Netflix is making waves in the advertising world, and the results are starting to show. Unlike other media companies, Netflix jumped into advertising a bit late. However, their recent earnings report reveals a positive trend that could change the game.
In 2025, Netflix’s advertising revenue topped $1.5 billion, making up about 3% of their total income for the year. This is expected to double soon. Overall, revenue rose by nearly 16%, and net income increased by 26%. Co-CEO Greg Peters expressed confidence in their advertising strategy, stating, “We’re making good progress and the opportunity ahead of us is massive.”
But not everyone is convinced. Some Wall Street analysts noted that Netflix’s ad revenue fell short of expectations. Deutsche Bank analysts pointed out that growth is finally accelerating but may take longer than predicted. “The last couple of years were slower out of the gate than we had estimated,” they said in a recent note.
Despite these concerns, analysts like Robert Fishman from MoffettNathanson appreciated the clearer picture of Netflix’s ad business. “We can finally understand how advertising contributes to growth,” Fishman noted.
As Netflix navigates this new territory, it’s essential to understand the changing landscape of streaming. As of 2025, Netflix boasted 325 million global subscribers, an increase of about 23 million from the previous year. In comparison, they added 41 million subscribers in 2024 and nearly 30 million in 2023. This shift highlights a growing consumer interest in ad-supported plans amid rising subscription prices.
With more viewers opting for affordable options, Netflix’s strategy may align well with market trends. Peters mentioned that while there’s still a gap between revenue from their standard subscription and ad-supported plans, that gap is closing. “It’s an opportunity for us,” he said, hinting at improvements in technology and advertising efforts.
In a world where traditional subscription models face challenges, Netflix’s move into advertising might be a smart adaptation. As the industry continues to evolve, watching how Netflix and other streamers manage this shift will be intriguing.
For a deeper dive into their metrics, take a look at Netflix’s financial report.
Source link
Earnings,Entertainment,Advertising,Business,Media,Breaking News: Business,Netflix Inc,Warner Bros Discovery Inc,business news
