Netflix: Ads Aren’t Scaring Away New Subscribers, Study Finds

Advertising has seemingly shed its status as a detested intrusion among streaming service users, with a significant portion now accepting these program interruptions.

According to data from the specialized firm Antenna, as reported by Bloomberg, during the first five months of 2025, 49% of Netflix subscriptions in the United States opted for the most economical plan. This particular plan includes commercial breaks similar to traditional TV channels, albeit in a lesser quantity.

This marks a clear increase compared to the two years following the introduction of this option in November 2022. In the first five months of 2023, the ad-supported option accounted for 20% of new subscriptions, which then surged to 39% at the start of 2024. By May, Netflix reported having 94 million subscribers worldwide on this plan (out of a total of 301 million subscribers at the end of 2024, the most recent figure available).

If this trend continues, the majority of new American Netflix subscriptions could be for this ad-inclusive offer, which represents a departure from the original concept of streaming services: a zone where one could enjoy an entire movie or series without a single commercial interruption.

The more affordable pricing likely influences the choice of new subscribers, especially as subscription rates have continued to rise: in France, the ad-supported plan now costs €7.99 per month (a €2 increase since April), while the next tier without ads costs €14.99 (a €1.5 increase).

However, Netflix has ensured that this budget-friendly option does not cut corners on quality. In the ad-supported tier, while some movies or series might not be available, the streaming quality is maintained at 1080p, and viewers can watch on two devices simultaneously, with the ability to download content on two devices as well. In the next tier up, which is ad-free, the catalog is more comprehensive, but all other technical aspects remain the same.

This strategy has been successful elsewhere as Disney+, Max, and Hulu in the United States have also introduced plans with ads. There may come a time when customers will not remember that it was once impossible to watch these platforms without encountering any ads. Netflix is set to announce its next quarterly results on July 17.