Netflix to take on Google and Amazon by building its own ad server

Netflix said on Wednesday its ad-supported tier has reached 40 million global monthly active users, from 5 million a year earlier, a sign that its push to attract new users with the cheaper plan is paying off.

The jump comes at a time when streaming companies are facing stiff competition and introducing bundles with their rivals to retain subscribers.

Netflix, which launched the ad-supported plan in November 2022, said that 40% of all sign-ups come from those plans in the countries where they are available.

In the fourth quarter, the majority of gross subscriber additions for the streaming industry came from ad-supported plans for the first time, data from research firm Antenna showed earlier this week.

Netflix also said it will launch an in-house advertising technology platform by the end of 2025, in a bid to offer clients new ways to buy ads and better engage with users.

The company said it will team up with Trade Desk , Google Display & Video 360, and ad-tech firm Magnite who will join Microsoft to accelerate automated ad buying.

Netflix’s ad-tier plan costs $6.99 per month, compared with monthly plans of $9.99 from Warner Bros Discovery’s streaming service Max and $7.99 for Walt Disney’s Disney+.

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