Netflix Ad Tier Hits 250M Users

Netflix’s ad-supported tier now has 250 million monthly users, a significant milestone for the streamer’s advertising strategy. Meanwhile, the platform’s new Assassin’s Creed TV series has begun filming in Italy with an expected 2027 release, and reports suggest potential device compatibility issues could affect 87 million devices this March.

The ad tier’s growth comes as Netflix continues to expand its reach in the streaming wars. With 250 million users opting for the lower-cost, ad-supported plan, the company has demonstrated the viability of combining traditional content with targeted advertising. This model now accounts for over 40% of Netflix’s total subscribers, a shift that has reshaped the streaming industry’s revenue landscape.

Advertising Strategy Gains Traction

Netflix executives have called the ad tier the most successful monetization experiment in streaming history. The service offers a $7 monthly plan with 48 ads per day, targeting users who prefer lower costs over ad-free experiences. This approach mirrors strategies used by Hulu and Amazon Prime Video but has outperformed expectations in user adoption metrics.

Behind the scenes, Netflix’s ad sales team has ramped up operations, hiring hundreds of new employees to manage inventory and negotiate with advertisers. The company’s data suggests users are tolerating the ads better than anticipated, with 72% of surveyed users reporting satisfaction with the trade-off between price and content quality. However, critics note this success may not be sustainable without continued content innovation to justify the lower subscription threshold.

Assassin’s Creed Production Begins in Italy

While Netflix’s financial models evolve, its content pipeline shows renewed energy. The Assassin’s Creed TV series, based on Ubisoft’s popular video game franchise, has started principal photography in Italy. The show, written by David Wiener and Roberto Patino, will explore the centuries-old conflict between Assassins and Templars.

Production delays have been common in streaming adaptations of video games, but the Italian location filming suggests concrete progress. Lead actors Toby Wallace, Tanzyn Crawford, and Lola Petticrew are among those featured in the cast. Though no specific release date has been announced, the production timeline points to a likely 2027 debut. This timing aligns with Netflix’s broader strategy to position itself as a hub for gaming IP, following earlier successes like The Witcher and Squid Game.

Device Compatibility Concerns Emerge

Amid these developments, reports from the Economic Times claim Netflix will stop working on 87 million devices in March 2026. The article contains no technical details about the affected hardware or software configurations, but historical patterns suggest this could relate to aging devices lacking modern DRM requirements.

Such device cuts are routine for streaming services, which must balance backward compatibility with technological progress. Netflix has previously phased out support for older consoles, smart TVs, and mobile devices. The March 2026 deadline aligns with the company’s typical hardware refresh cycle, though affected users would need to upgrade receivers or apps to maintain access. Consumer advocates note that the transition could disproportionately impact users in emerging markets who rely on older, affordable devices.

Streaming Industry’s Shifting Landscape

These developments highlight Netflix’s dual challenge: maintaining its content leadership while adapting monetization models to changing consumer behavior. The ad tier’s success suggests a broader trend toward tiered pricing in entertainment, with services like Disney+ and HBO Max experimenting with similar approaches. Meanwhile, the Assassin’s Creed production underscores the growing importance of gaming adaptations as a content source for streaming platforms.

Device compatibility issues reflect another industry-wide tension between innovation and accessibility. As services adopt newer technologies like AV1 video codecs and DRM schemes, the cost of maintaining support for older hardware increases. Netflix’s March 2026 deadline appears to be another step in this ongoing evolution.

What to watch:

1. Monitor the ad tier’s retention rates over the next quarter to assess long-term viability
2. Track the Assassin’s Creed series’ production progress through 2026 for potential release window updates
3. Watch for official announcements about affected devices in early 2026

Updates

• 2026-05-14 — Making the news available at no cost is a victory (source)
• 2026-05-13 — Trump administration defends right to ban content moderation experts from US (source)