Netflix announced that its $7.99 ad tier has reached “critical scale” with over 190 million monthly active viewers in October. The new metric includes viewers who watched at least one minute of ads per month, providing a clearer picture for advertisers. The ad-supported tier is available in 12 countries.

Previously, Netflix tracked ad performance through monthly active users, which was less precise. The company reported 94 million MAUs in May, but hasn’t disclosed subscriber figures or revenue for the ad tier. The shift to viewers aims to give a more comprehensive count, according to Netflix president of advertising Amy Reinhard.

Despite missing profit and revenue targets last quarter, Netflix emphasizes advertising as a key growth driver. Ad revenue is expected to more than double in 2025, with a strong foundation in the ad-supported tier. The company has expanded ad offerings and partnerships with companies like Amazon, Google, and the Trade Desk.

JPMorgan analyst Doug Anmuth projects Netflix’s ad revenue to climb from $1.4 billion in 2024 to $2.9 billion in 2025, increasing to $4.2 billion by 2026. The company is doubling down on its advertising ambitions following a record quarter for ad sales. Executives highlight the increasing demand and growth potential in the ad-supported tier.

Read more at Yahoo Finance: Netflix says ads reached 190 million viewers in October as company rolls out new metric