Netflix will introduce its ad-supported subscription tier in the Philippines in 2027 as part of a wider expansion into 15 additional markets. The move signals the streaming company’s continued push into advertising while offering lower-cost subscription options to more viewers worldwide.
The Philippines joins Austria, Belgium, Colombia, Denmark, Indonesia, Ireland, the Netherlands, New Zealand, Norway, Peru, Poland, Sweden, Switzerland, and Thailand in the next phase of Netflix’s ads rollout.
Netflix expands its ad-supported streaming strategy
Netflix first launched its ad-supported plan in 2022 across 12 countries as competition in the streaming industry intensified and subscriber growth slowed in key markets.
The company positions the plan as a lower-priced alternative that retains the standard Netflix viewing experience while inserting limited advertisements between content.
According to Netflix, its ad-supported tier now reaches more than 250 million monthly active viewers globally. The company also said more than 80% of users on the ads plan actively watch content every week.
Netflix added that the ad-supported plan accounted for over 60% of all first-quarter signups in markets where the option is currently available.
Philippines becomes part of Netflix’s next growth market
The upcoming Philippine launch reflects the growing importance of Southeast Asia in the streaming industry.
With rising subscription costs across digital platforms, ad-supported streaming has become increasingly attractive in mobile-first markets like the Philippines, where viewers often prioritize flexible and lower-cost entertainment options.
Netflix has not yet announced local pricing for the Philippine ads plan. More details regarding subscription tiers and pricing are expected closer to launch.
Advertising business continues to scale
Netflix said it now works with more than 4,000 advertisers globally, marking a 70% year-over-year increase.
The company also expects its advertising business to generate around $3 billion in revenue this year, doubling its projected performance from 2025.
Beyond traditional video ads, Netflix plans to introduce additional advertising formats globally in 2027, including podcast advertising, vertical video ads, expanded branded content integrations, and partnership opportunities through Tudum.
Netflix said Tudum currently generates more than 24 million monthly views through entertainment news, exclusive features, and fan-focused content.
AI and interactive advertising become part of Netflix’s roadmap
Netflix also highlighted its continued investment in artificial intelligence tools for advertising and content production.
The company said AI will help create more immersive and interactive ad experiences while improving campaign targeting and engagement for advertisers.
The strategy places Netflix in more direct competition with established advertising platforms and streaming rivals that already rely heavily on ad-supported business models.
Netflix continues to expand beyond subscription streaming as it builds a larger advertising ecosystem tied to shows, films, podcasts, live events, and fan-driven platforms.
