Netflix stock jumps 9% as it boasts ad-tier growth

Netflix saw its stock rise more than 9% Thursday soon after unveiling details about its new ad-supported tier that suggested the business model is starting to pay off.

The streaming service this week said it had five million monthly active users for its cheaper, ad-supported option and 25% of its new subscribers were signing up for the tier in areas where it’s available.

The update came at Netflix’s inaugural pitch to advertisers Wednesday, the first time Netflix took part in the industry’s so-called Upfront presentations. This year, top media companies including Comcast’s NBCUniversal...