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Investing.com -- Netflix (NASDAQ:NFLX) stock rose 0.5% Wednesday after the streaming giant announced it has reached more than 190 million monthly active viewers (MAVs) for its advertising business globally.
The company revealed the new metric as part of an update on its advertising business, which is now in its third season. Netflix said it decided to reassess how it measures ad reach, moving from account profiles to MAVs, which it defines as members who have watched at least one minute of ads per month, multiplied by the estimated average number of people within a household.
This change aims to provide "a more complete metric" that better represents the actual number of viewers exposed to advertisements on the platform. Netflix stated that the previous measurement didn’t account for all engaged viewers watching content together.
The streaming service also announced several enhancements to its advertising capabilities, including the testing of interactive video ads in the US and Canada. The company plans to roll out these ads globally by the second quarter of 2026.
Additionally, Netflix is expanding its targeting capabilities with new demographic options such as education, marital status, and household income. The platform has also extended its partnership with LiveRamp globally to enable first-party data capabilities across ten countries.
The company is testing dynamic ad insertion during live events, beginning with WWE Raw and SmackDown this quarter, and will offer this feature for the upcoming NFL Christmas Gameday across six countries.
Netflix launched its ad-supported tier in late 2022 as a lower-priced option for subscribers. The company now reports having thousands of advertising clients worldwide and partnerships with over 50 global ad measurement vendors.
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