Netflix Bets on Ads, Sports, and Scale to Define the Future of Streaming

LOS GATOS, Calif., May 15, 2023 — Netflix, long the poster child of subscription-based binge culture, is accelerating its shift into advertising, live content, and tech-driven brand integrations. The company announced it now has 94 million monthly active users on its ad-supported plan, more than doubling from 40 million a year ago.

“This time last year, we told you what we’d deliver – and today, we delivered it,” said Amy Reinhard, Netflix’s president of advertising. “We’re now live with our in-house adtech platform in the U.S. and Canada and expanding globally by June.”

Netflix claims users on its ad tier are more engaged than those on competing services. According to the company, viewers spend an average of 41 hours per month on the ad-supported version. “Members pay as much attention to mid-roll ads as they do to the shows themselves,” Reinhard said. “A dollar spent on Netflix is more valuable than a dollar spent anywhere else.”

At the company's recent advertising presentation, Reinhard introduced the Netflix Ads Suite, a new offering that features 100+ interest-based targeting options, new buying mechanisms, and generative AI-powered ad formats designed to visually match Netflix originals. Actress Lily Collins appeared in character from Emily in Paris to help unveil the product.

The suite will soon support interactive mid-rolls, second-screen campaigns, and pause ads offering overlays, product information, and personalized calls to action. “We’re marrying art and science,” said Reinhard. “We have the audience, the tech, and the shows everyone’s talking about.”

The company also made clear its ambitions in live content. NFL commissioner Roger Goodell joined Netflix executives to confirm that this year’s Christmas Day games will include the Cowboys vs. Commanders and Lions vs. Vikings. Cowboys owner Jerry Jones previewed his upcoming Netflix docuseries America’s Team: The Gambler and His Cowboys. The Dallas Cowboys Cheerleaders punctuated the moment with a performance of Thunderstruck.

“Live events give people a shared experience,” said chief content officer Bela Bajaria. “And they bring audiences back again and again.”

While rivals such as Warner Bros Discovery pursue a leaner content strategy, Netflix continues to expand its slate. Bajaria revealed more than 100 new shows alongside returning hits such as Stranger Things, Wednesday, Squid Game, and Bridgerton, plus live offerings from WWE, boxing, and the NFL.

“I’m programming a slate, not time slots,” Bajaria said. “And our biggest shows still make up less than 1% of total viewing.” The company’s model leans heavily on volume, not just standout hits.

Still, the sheer quantity of content raises questions about discoverability. Weekly releases and an upcoming homepage redesign may help, but some marketers remain skeptical about cutting through the clutter.

To address those concerns, chief marketing officer Marian Lee spotlighted creative integrations that tie brands into Netflix’s storytelling. “Last year, Domino’s became the title sponsor of Squid Game, creating custom ads with characters ordering emergency pizzas,” Lee said. She added that Wendy’s is partnering with Wednesday, and Booking.com is producing holiday-themed content with Nevermore Academy alumni.

“We’ll treat your brand like we treat our own,” Lee said. “No one-size-fits-all creative, no cookie-cutter media plans.”

Netflix’s leadership believes the company’s lack of linear television baggage gives it the freedom to build an entirely new model — blending content, advertising, and technology into a global, always-on ecosystem.

“This is peak TV,” Bajaria said. “We’re living it right now.”

The challenge ahead will be keeping viewers — and advertisers — invested as the pace and pressure of weekly streaming escalate.

This time last year, we told you what we’d deliver – and today, we delivered it.