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Netflix ad tier reaches 40 million monthly active users

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Netflix (NFLX) told advertisers at its second Upfront presentation on Wednesday that its ad tier has reached 40 million global monthly active users — a significant jump from the 15 million users the company revealed back in November and a 35 million increase compared to the year-ago period.

The ads plan now accounts for over 40% of all Netflix sign-ups in markets where it’s offered.

“Our audiences are highly engaged — and by engaged I mean that they are choosing to spend their time watching Netflix,” the company’s content chief Bela Bajaria said on Wednesday.

According to the streamer, over 70% of Netflix’s ad-supported members watch for more than 10 hours a month — 15 percentage points higher than the nearest competitor, Netflix said, citing Nielsen data.

To note: Monthly active users, otherwise known as MAUs, are not the same as paying subscribers. The company has yet to reveal actual subscriber figures for the ad tier, or how much revenue it’s generated so far. MAUs can include multiple people using the same account.

In addition to the user updates, the company also announced a new in-house advertising technology platform, which will give advertisers alternative ways to buy ads and measure impact.

“Bringing our ad tech in-house will allow us to power the ads plan with the same level of excellence that’s made Netflix the leader in streaming technology today,” Amy Reinhard, Netflix’s president of advertising, said during the presentation.

Additionally, the streamer will further leverage live events, revealing that energy drink company Celsius will be the first presenting sponsor for the Jake Paul vs. Mike Tyson event, which will stream live on the platform this July.

Brand partners for the event will be featured throughout the broadcast, the company said.

Netflix's ads plan now accounts for over 40% of all Netflix sign-ups in the markets it's offered in. REUTERS/Dado Ruvic/Illustration/File Photo

Netflix’s ads plan now accounts for over 40% of all Netflix sign-ups in the markets where it’s offered. (REUTERS/Dado Ruvic/Illustration/File Photo) (Reuters / Reuters)

The Upfront news comes after Netflix said earlier on Wednesday that it won the streaming rights to two NFL games set to air Christmas Day as part of a three-season deal.

The company will reportedly pay less than $150 million per game, according to Bloomberg.

“We are positive on the NFL deal, which we believe will create a compelling value proposition for NFLX’s emerging ad business,” Jefferies said in a research note following the news.

“This would represent NFLX’s biggest foray into fully unscripted live sports content,” the bank said, calling the deal terms “highly attractive” given that the company has previously spent similar amounts on original movies such as “The Gray Man and “Red Notice.”

Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.

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