Netflix will see sluggish Arpu growth for ad tier moving forward
A new study suggests that revenue per user on Netflix’s advertising tier will continue to be outpaced by its ad-free plans.
The journey into ad-supported streaming is a marathon, not a sprint for Netflix. The streaming service, which recently announced that it has crossed the of 300 million global customers threshold, is still not seeing explosive growth from its ad-supported “Standard with Ads” plan, first introduced in late 2022. Global advertising revenue is on the rise for Netflix, but new data from Bernstein Research shows that the streamer’s average revenue per member (Arm) on its ad plan will continue to lag behind that of its ad-free tier.
Key Details: Ad revenue for Netflix will jump to $4 billion in 2025. Bernstein doesn’t foresee the gap between ad-supported and ad-free revenue per member to close in the near future. Netflix recently announced a price increase on all of its streaming plans. Sign Up $7.99+ / month netflix.
The journey into ad-supported streaming is a marathon, not a sprint for Netflix. The streaming service, which recently announced that it has crossed the of 300 million global customers threshold, is still not seeing explosive growth from its ad-supported “Standard with Ads” plan, first introduced in late 2022. Global advertising revenue is on the rise for Netflix, but new data from Bernstein Research shows that the streamer’s average revenue per member (Arm) on its ad plan will continue to lag behind that of its ad-free tier.
Key Details: Ad revenue for Netflix will jump to $4 billion in 2025. Bernstein doesn’t foresee the gap between ad-supported and ad-free revenue per member to close in the near future. Netflix recently announced a price increase on all of its streaming plans. Sign Up $7.99+ / month netflix.
- 1/28/2025
- by David Satin
- The Streamable
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