Netflix Reports 190 Million Monthly Active Viewers for Ads

Los Gatos, California — Netflix announced on Wednesday that its new advertising metric shows over 190 million monthly active viewers (MAVs) globally. This marks a significant measurement for the streaming giant as it expands its ad-supported subscription tier in 12 countries.

The new metric, introduced by Netflix’s president of advertising Amy Reinhard, aims to provide a clearer benchmark for ad reach. MAV counts users who have watched at least one minute of ad-supported programming, then multiplies that by the average number of people in a household based on internal research.

“Some of our competitors have thresholds ranging from zero to ten seconds, but we believe one minute signifies a commitment to viewing,” Reinhard explained to reporters. This threshold is a new approach compared to Netflix’s previous measurement of two minutes for a view.

Previously, at the upfronts in May, Netflix reported 94 million monthly active users for its ad tier, translating to approximately 170 million viewers. Reinhard acknowledged that the earlier figure did not include the one-minute view minimum.

While Reinhard noted that the MAV will not directly impact how Netflix approaches advertisers, it aims to enhance transparency regarding user engagement with ads. As Netflix moves into live streaming and dynamic ad insertion, the company looks to broaden ad revenue significantly.

Co-CEO Greg Peters commented that Netflix experienced its best quarter for ad sales in the third quarter. He emphasized that while advertising revenue remains small compared to subscriptions, there is substantial room for growth in this area.

The move to implement MAV comes amid Netflix’s continued exploration of advertising and video gaming, sectors that still yield limited revenue. With further expansion planned, Netflix positions itself to enhance its advertising strategy.