Netflix subscribers up after shift to include ads in cheaper streaming version

Netflix’s subscriber growth is surging again following two quarters of customer losses (Jenny Kane/AP/PA)

Netflix’s subscriber growth is surging again, providing an early sign that its shift to include ads in a cheaper version of its video streaming service is helping to combat tougher competition and attract cost-conscious customers grappling with inflation.

The company on Thursday disclosed a gain of 7.7 million subscribers during the October-December period, a stretch that included the debut of an ad-supported option for seven dollars (£5.65) per month – less than half the price of its most popular commercial-free plan.