Now Streaming: Netflix says ad-supported plan reaches over 250M MAUs

“Now Streaming” is The Fly’s weekly recap of the stories surrounding the biggest content streamers.

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PLAYING THIS WEEKEND: Among this weekend’s most notable new streaming content is Paramount+ (PSKY) TV series “Dutton Ranch,” a show that serves as both spin-off and sequel to hit series “Yellowstone.” Meanwhile, Disney+ (DIS) subscribers can catch “The Punisher: One Last Kill,” a TV special in the Marvel Cinematic Universe starring Jon Bernthal. Additionally, Hulu users can watch the new season of sports documentary series “Welcome to Wrexham,” which features Ryan Reynolds and Rob McElhenney.

FOX RESULTS: On Monday, Fox (FOXA) reported better-than-expected Q3 earnings and revenue, with adjusted EBITDA for the quartere rising 11% year-over-year. Commenting on the results, Executive Chair and Chief Executive Officer Lachlan Murdoch said, “Our fiscal third quarter results once again demonstrate continued strength and momentum across our business. This strong performance, led by robust core advertising trends, underscores FOX’s leadership in live programming, bolstered by continued strength at our leading free streaming service, Tubi. Against this backdrop, we are proud to be bringing the world’s biggest sporting event to American homes with the FIFA Men’s World Cup hosted here in North America across June and July. Meanwhile we remain steadfast in our commitment to delivering long-term shareholder value supported by our strong balance sheet.”

NETFLIX UPFRONT: During its “upfront” presentation to advertisers, Netflix (NFLX) said its ad-supported subscription plan reaches over 250M global monthly active viewers, up from 190M it cited this past November, Variety’s Brian Steinberg reported. The streaming giant also said its ad tier will expand to 15 additional countries beginning in 2027, including Austria, Belgium, Colombia, Denmark, Indonesia, Ireland, Netherlands, New Zealand, Norway, Peru, Philippines, Poland, Sweden, Switzerland, and Thailand.

Meanwhile, Netflix said it will air five NFL games next season, as opposed to just two Christmas Day games it has broadcasted the past two seasons. The streaming giant will air the season opener between the San Francisco 49ers and Los Angeles Rams in Australia, a Green Bay Packers vs Rams contest the night before Thanksgiving, two Christmas Day games, and a week 18 game in January. Netflix will also broadcast the NFL Honors presentation. According to Variety, the new schedule will be in place through the 2029-2030 NFL season.

Following the news, JPMorgan reiterated an Overweight rating on Netflix with a $118 price target, with the firm saying it is positive on Netflix’s reach, content strategy, and improving advertising technology. The company’s upfront announcements demonstrate progress towards building a scaled advertising strategy and highlight the view of Netflix becoming “Global TV,” the analyst tells investors in a research note.

Meanwhile, Raymond James reiterated a Market Perform rating on Netflix, saying it came away from the company’s Upfronts presentation and Q&A session with several key takeaways. Of note, the firm said the engagement debate is not likely to be settled anytime soon, but Netflix likes its chances with its 2026 content slate, and that ads scaling is solid, with the building blocks in place for market expansion while the Netflix Ads Suite adds more tools. Additionally, the company’s willingness to innovate on standard TV ad experiences should be a positive over time, but usually change in the ad industry requires a bit of convincing among buyers, the analyst tells investors in a research note.

INKUBATOR: Netflix has been working on a new internal studio known as INKubator that seeks to use generative AI to create short-form animated content, with thee company hiring for a wide variety of roles at the studio, including producers, software engineers, and CG artists, Lowpass’ Janko Roettgers reported, citing a number of recently published job listings. The company has not yet publicly announced plans for INKubator, though a handful of LinkedIn profiles indicate the studio quietly launched in March, the author noted.

NETFLIX/TEXAS: Texas Attorney General Ken Paxton sued Netflix for “spying on Texans, including children, and collecting users’ data without their knowledge or consent.” Paxton said, “For years, Netflix represented to consumers that it did not collect or share extensive user data. In reality, Netflix is a logging company that records and monetizes billions of behavioral events-and occasionally streams movies. Netflix uses intentional engineering to track and log users’ viewing habits, preferences, devices, household networks, application usage, and other sensitive behavioral data. Every interaction on the platform became a data point revealing information about the user. This tracking applied to not only adults’ accounts, but also kids’ profiles.” The lawsuit seeks to stop the collection and disclosure of user data, require Netflix to disable autoplay by default on kid’s profiles, and secure other injunctive relief and civil penalties.

FCC/DISNEY: FCC Commissioner Anna Gomez sent a letter to Disney CEO Josh D’Amaro saying that the media giant has been “made a target” by the commission. “I am writing because The Walt Disney Company has once again been made a target by this FCC, and the record of its actions against your company demands a clear accounting,” the letter reads. “What Disney and ABC are facing is not a series of coincidental regulatory actions but a sustained, coordinated campaign of censorship and control, carried out through the weaponization of the FCC’s authority as a federal regulator and aimed at pressuring a free and independent press and all media into submission. You are not the first target of this campaign, and you will not be the last.”

WARNER BROS./’UNBREAKABLE’: Warner Bros. Discovery (WBD) announced “Unbreakable,” a suite of new cross-platform ad solutions from Warner Bros. Discovery Advertising that it says are designed to “connect brands with audiences through seamless, participatory experiences.” The company added: “This fan-first approach is designed to move fluidly between linear television, digital environments, and social platforms, ensuring that brand experiences remain consistent and impactful regardless of where fans engage.”

STOCK PLAYS: Other publicly traded companies in the space include Comcast (CMCSA), Apple (AAPL), Amazon (AMZN), FuboTV (FUBO), AMC Networks (AMCX), and Roku (ROKU).