Netflix Shifts Viewership Metric as Ad Business Enters Fourth Year
Netflix is changing how it measures viewership on its ad-supported tier, signaling a maturing strategy as the streaming giant heads into its fourth year of advertising.
The company announced Wednesday it now reaches more than 190 million monthly active viewers (MAVs). This new metric defines viewership as subscribers watching at least one minute of ads on Netflix per month, multiplied by the number of people watching in a given household – data sourced from Netflix’s own research.
This shift comes as Netflix seeks a more accurate gauge of ad engagement than its previous metric. Last May, the company reported 94 million monthly active users (MAUs) on its ad tier. While MAUs are common in the ad-supported streaming world, industry debate exists regarding their accuracy in reflecting actual ad views versus overall programming consumption. In Netflix’s case, MAUs were tied to account profiles, which the company determined undercounted co-viewing, particularly important for live events.
“Our move to viewers means we can give a more comprehensive count of how many people are actually on the couch, enjoying our can’t-miss series, films, games and live events with friends and family,” a company release stated.
The move to incorporate advertising marked a significant reversal for Netflix, which for years resisted the practice. The decision came in the spring of 2022, coinciding with a period of slower growth following the surge in subscribers during the COVID-19 pandemic and increased competition in the streaming market. Within months, Netflix launched its ad tier through a partnership with Microsoft, and the initiative has rapidly expanded. Live programming, including WWE Raw and NFL games on Christmas Day, has created increased opportunities for ad placement. The $9-a-month ad tier has also proven popular with price-conscious consumers as streaming service costs continue to rise.
As it enters its fourth year with advertising, Netflix reports having thousands of advertising clients globally. The company has also fully transitioned to its own ad-tech platform, expanding programmatic solutions to include major players like Amazon, AJA, Google Display & Video 360, The Trade Desk, and Yahoo DSP. Netflix has also partnered with over 50 global ad measurement vendors and asserts it has achieved “critical scale” in all markets.
Looking ahead, Netflix is currently testing interactive video ad formats in the United States and Canada. The goal is to better understand subscriber viewing behavior and enable advertisers to leverage templates based on that data. Citing promising initial results, Netflix plans to roll out these formats worldwide by the second quarter of 2026.
