Netflix and Disney+ have seen a surge in ad-supported subscribers as rising prices push users away from ad-free plans. Morgan Stanley reports that ad tiers now account for 30% of Netflix's and 50% of Disney+'s subscriber base, with all net growth this year attributed to these cheaper options.

Netflix developed a robust ads event processing pipeline to enhance the feedback system crucial for successful ad campaigns. The architecture includes components for ad serving, tracking, and real-time analytics, allowing for scalability and improved performance in ad delivery and measurement. Key innovations include a new persistence layer for metadata management and a centralized system for ad telemetry.