Netflix's advertising supported membership grew 65% in the March quarter.
The streaming platform says more than 40% of all signups in markets where the advertising subscription is available are coming from the ads plan.
"Our two priorities in ads are to scale our member base and to build out our capabilities for advertisers," Netflix told shareholders in a letter.
"For advertisers, we continue to focus on measurement solutions."
This includes partnerships with Kantar and Lucid for brand awareness and recall, and Nielsen Catalina Solutions for sales lift.
Netflix is also working on building its sales capabilities.
Analysts believe total returns (subscription plus advertising dollars) from the ad-supported subscription tier are attractive. Revenue per member is expected to become greater than Netflix’s standard plan.
The company reported overall revenue up almost 15% to $US9.37 billion in the March quarter.
Global streaming paid memberships grew by 9.33 million, or 16%, to 269.6 million.
Netflix is forecasting revenue growth of 13% to 15% for the full year.
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