Netflix says ads will start appearing in more parts of its app

Netflix keeps getting more expensive, which pushes more users toward its advertising tier. Today, along with the rise of ad subscriptions, Netflix also announced that ads will be expanded to more places in its app.

Netflix Launches Vertical Video Stream Ads and More Podcasts in the Coming Year

A few years ago, Netflix rejected the idea of an advertising tier. But then the company changed its mind and, undoubtedly due to the continued rise in prices, a large part of users are now opting for this more affordable advertising plan.

Netflix revealed today during its upfront presentation that more than 250 million people worldwide use its advertising plan every month. This is a significant increase from 94 million recorded at the same time last year.

But the streamer has more ambitious advertising plans than simply strengthening its subscriber base at the advertising level.

By The edgeNetflix announced that ads will expand in the coming year in two additional ways:

Ads will start appearing in the Netflix app’s new vertical video feed
Other Netflix podcasts will also start showing ads

These changes are intended to further increase Netflix’s advertising revenue as subscriber growth is no longer the historic success it once was for the company.

Netflix remains the most successful streaming service in the world, but market saturation has slowed its growth. Now that the planned acquisition of Warner Bros. Discovery doesn’t happen, increasing ad revenue could become more central to the company’s narrative on Wall Street.

Meanwhile, Apple TV remains the only major streaming service that doesn’t yet offer an ad tier. And although Eddy Cue does not rule out showing ads in the future, I think nothing will change until the current subscription price increases.