Netflix has announced a new ad metric — and it’s already drawing some criticism.
The new metric, “monthly active viewers,” represents the number of Netflix ad-tier users who watch at least one minute of ads on the platform per month. Netflix then multiplies that figure by the number of people estimated to be watching within each household, based on its own first-party data (possibly tied to user profiles).
Why This Matters:
Some are calling the new metric a form of gamesmanship. In the past, Netflix has referred to accounts — but this new approach expands the definition of “users” by factoring in multiple household members (again, potentially through individual profiles under a single account). The company is also setting a low bar for inclusion — just one minute of ad viewing per month.
Media coverage hasn’t been especially kind. Sherwood News, for example, ran the headline: “Netflix creates new made-up metric for advertisers.” Deadline tied the change to competitive pressure, writing: “The development comes as Netflix strives to become more competitive with its peers in the battle to win ad dollars from Madison Avenue.”
On X, Fox’s Michael Mulvihill called the metric “an all-timer” — not as a compliment — noting, “If we used this trick to calculate reach for the World Series, for example, it would inflate reach by 70%.” (By the way, viewership for the World Series was very good.)
Experts React:
But hold on — is the criticism entirely fair? The metric arguably provides a more accurate baseline of who’s actually watching the ad-supported tier. Counting “users” as “accounts” clearly underestimates viewership, given how much co-viewing still happens (not to mention ongoing account sharing).
Lightshed’s Rich Greenfield made a similar point: “Isn’t Netflix’s definition WAY more conservative than Disney’s methodology? Also, this is a monthly reach metric, not how they are accounting for actual program ratings/viewership.”
Our Take:
Netflix is still in the early stages of building its ad business, and, at least to us, this new metric feels more evolutionary than manipulative. New forms of measurement are needed to better reflect viewership and reach — especially across shared, multi-viewer households.
And, really, maybe the more important question is this: where would you rather have your ad run — the new season of Stranger Things, or just about anything else on TV? Netflix’s programming power speaks for itself (I mean…). If anything, the company’s new metric might be conservative given the scale and cultural impact of its content.
