Netflix’s ad-supported tier is about to get a lot more crowded with advertisements. The streaming giant announced plans to expand ad placements across its app starting in 2027, signaling an aggressive pivot toward advertising revenue as subscription price hikes plateau.
Key Takeaways
- Netflix’s ad-supported tier grew from 94 million to over 250 million users globally in one year.
- Ads will begin appearing in Netflix’s vertical video feed and podcast lineup in 2027.
- The ad-supported plan will expand to 15 new countries, including Austria, Belgium, Colombia, Denmark, Indonesia, Ireland, the Netherlands, New Zealand, Norway, Peru, the Philippines, Poland, Sweden, Switzerland, and Thailand.
- Netflix is testing personalized ads based on individual viewing behavior.
- The Standard with Ads plan currently costs $8.99 per month, up from $6.99 at launch in 2022.
How Netflix’s ad-supported tier is transforming
Netflix’s ad-supported tier has become a revenue powerhouse. The company reported more than 250 million users on its ad-supported membership plan globally, a dramatic jump from 94 million users reported the previous year. This explosive growth has emboldened Netflix to deepen its advertising footprint across the platform, moving beyond traditional pre-roll and mid-roll ads into emerging content formats.
The Netflix ad-supported tier will soon feature ads in two major new areas: the vertical video feed and podcast content. The vertical video feed is a recently launched mobile feature designed to compete with TikTok and YouTube Shorts, while Netflix’s podcast offerings launched in late 2025. Both represent growth opportunities for advertisers seeking younger, more engaged audiences. By embedding ads into these formats, Netflix transforms casual browsing into monetized experiences.
Where ads are appearing in 2027
Starting in 2027, Netflix will inject ads into its vertical video feed, a mobile-first feature that lets users scroll through short-form clips. Podcast sponsorships will also expand, allowing advertisers to reach listeners during audio content consumption. Additionally, Netflix plans to expand advertiser sponsorship opportunities around Tudum, its fan-focused website, creating another revenue stream beyond traditional video ads.
The company is also testing a new personalization tool that adjusts ads based on individual viewing behaviors. This targeting mechanism allows advertisers to reach subscribers with ads aligned to their specific interests, potentially increasing ad effectiveness and advertiser spending. Such granular personalization mirrors tactics used by YouTube and traditional digital advertising platforms, moving Netflix closer to a full-featured ad network than a simple subscription service.
Netflix ad-supported tier expansion to 15 new countries
Netflix is taking its ad-supported tier international in a major way. The company plans to expand the ad-supported subscription option to 15 new countries next year, including Austria, Belgium, Colombia, Denmark, Indonesia, Ireland, the Netherlands, New Zealand, Norway, Peru, the Philippines, Poland, Sweden, Switzerland, and Thailand. This geographic expansion signals that Netflix views advertising as a global growth lever, not just a North American or European strategy.
The move reflects Netflix’s confidence in the ad-supported model as a gateway product. Subscribers in these new markets will encounter the $8.99-per-month Standard with Ads plan (the current pricing after Netflix’s March 2026 increase), positioned below the $19.99 Standard ad-free plan and $26.99 Premium tier. By offering a cheaper entry point with ads, Netflix captures price-sensitive users while training them to accept advertising as a trade-off for lower cost.
Why Netflix is betting big on ads despite subscriber backlash
Netflix’s shift toward aggressive ad expansion reflects a fundamental business challenge: subscription growth has slowed. Price increases have become the primary lever for revenue growth, but they risk driving churn. Advertising offers an alternative: monetize existing subscribers without raising prices further, or offset price resistance with an ad-supported option that costs less but generates per-user revenue from advertisers.
The Netflix ad-supported tier’s growth from 94 million to over 250 million users in a single year proves the model works. Subscribers accept ads when the price is right. By expanding ads into new content formats and geographies, Netflix is doubling down on a bet that users will tolerate more advertising in exchange for affordability. Whether that tolerance extends to ads in vertical video feeds—spaces traditionally reserved for organic discovery—remains uncertain.
How Netflix compares to ad-free alternatives
Netflix offers three tiers: Standard with Ads at $8.99 per month, Standard ad-free at $19.99, and Premium at $26.99. The price gap between ad-supported and ad-free is substantial—roughly $11 per month, or 122% more for ad-free viewing. This pricing structure incentivizes the ad-supported tier while making the ad-free option a premium luxury. Competitors offering similar tiering structures rely on similar psychology: make ads the default, charge a premium to escape them.
The distinction matters. As Netflix embeds ads deeper into its app—into vertical video, podcasts, and personalized targeting—the ad-free experience becomes increasingly valuable by contrast. Users who want uninterrupted browsing, discovery, and listening will face mounting pressure to upgrade. This dynamic mirrors cable television’s original model: basic service includes ads, premium packages exclude them.
What this means for Netflix subscribers
If you use the Netflix ad-supported tier, expect more interruptions. Scrolling through vertical video will surface ads. Listening to podcasts will include sponsorships. Your ads will be tailored to your viewing history, making them potentially more relevant but also more intrusive. The trade-off remains financial—$8.99 per month is substantially cheaper than ad-free alternatives—but the experience will diverge further from Netflix’s premium tiers.
For ad-free subscribers, the changes are invisible but meaningful. As Netflix monetizes more of its interface through advertising, the value proposition of ad-free plans strengthens. You are not just paying to avoid ads; you are paying to avoid a fundamentally different product experience. That premium will likely remain justified, at least until Netflix’s ad business matures and the company raises prices on ad-free tiers to capture more of the value.
Is the Netflix ad-supported tier worth it?
The Netflix ad-supported tier costs $8.99 per month and includes ads in video content, and soon in vertical video and podcasts. Whether it is worth it depends on your tolerance for advertising and your budget. If you watch Netflix casually and do not mind ads, the savings of $11 per month versus the Standard plan are substantial. If you watch frequently or value uninterrupted browsing, the ad-free experience is worth the upgrade.
When will ads appear in Netflix’s vertical video feed?
Netflix plans to begin showing ads in its vertical video feed starting in 2027. The feature is already live in the mobile app, but ad placements are coming next year. Podcasts will also receive ads in 2027. These rollouts are planned, not yet live.
How many countries will get the Netflix ad-supported tier next year?
Netflix is expanding its ad-supported tier to 15 new countries: Austria, Belgium, Colombia, Denmark, Indonesia, Ireland, the Netherlands, New Zealand, Norway, Peru, the Philippines, Poland, Sweden, Switzerland, and Thailand. This expansion, combined with existing markets, positions Netflix’s ad business as a truly global operation.
Netflix’s strategy is clear: advertising is no longer a secondary revenue stream or a compromise for budget-conscious subscribers. It is the future of the platform. By expanding ads into vertical video, podcasts, and new geographies, Netflix is transforming itself from a subscription service into an ad-supported media company that happens to also offer ad-free tiers. For subscribers, that transformation means more ads, more targeting, and more pressure to pay for the privilege of avoiding them. The question is not whether Netflix will flood its app with ads—it already is. The question is how much users will tolerate before switching to competitors or cutting the cord entirely.
Edited by the All Things Geek team.
Source: Android Central
