Netflix users don’t seem to mind a few ads if that will get them a lower price on watching their favorite movies and TV shows. As part of its third-quarter earnings shared on Thursday, which beat the estimates, the streaming service giant revealed that its ad-tier subscription plan saw a growth of 35% compared to last quarter.
The success of the ad-supported membership in the United States prompted the company to expedite the introduction of the same plan in Canada by the end of the year while planning to make it worldwide in 2025.
The growth of ad-tier subscriptions, which accounted for 50% of new sign-ups, helped Netflix record $9.83 billion in revenue, topping the $9.77 billion expected by analysts. It had $5.40 in earnings per share compared to estimates of $5.12.
For the past quarter, Netflix added 5.1 million new subscribers, 600K more than the analysts expected. The total number of users who paid for membership came to 282.7 million versus the estimated 282.15 million.
Netflix now expects $10.13 billion in revenue for the current quarter while projecting revenue for the full fiscal 2024 in the range of $43 billion to $44 billion.
The strong earnings helped Netflix’s stock jump by almost 5% in after-hours trading. The company’s shares previously closed at $687.65 per share on Thursday, being 46.78% up year-to-date.