Netflix recently revealed some exciting updates for 2025. In a call with investors, they announced they ended last year with $42.5 billion in revenue, marking a 16% growth compared to the previous year. A notable chunk of this revenue, $1.5 billion, came from their advertising segment, which has surged by 150% year-over-year. It’s important to remember that this advertising business is still young, only three years old.
Though Netflix didn’t share exact numbers of ad-supported subscribers, last November, they mentioned having around 190 million monthly active viewers using this ad tier. Co-CEO Greg Peters highlighted that now that the ads business has reached a significant size, the focus will shift to better monetizing their ad inventory. They project ad revenue could nearly double this year, potentially hitting $3 billion.
To enhance demand from media buyers in 2026, Netflix plans to introduce more data and diverse ad formats. Peters noted they’re making first-party data more accessible, but with privacy in mind, to improve ad performance. They’re also exploring interactive ad formats expected to roll out in the second quarter of the year. This move indicates Netflix’s serious investment in refining their ad technology, built in-house over the past couple of years.
While Netflix remains cautious about sharing specific details on these advancements, their main goal is clear. By improving ad targeting and measurement, they aim to increase ad fill rates and, consequently, boost ad revenue per member—something investors closely watch.
Despite these strides, Netflix acknowledges they currently capture less than 10% of TV viewing in key global markets, including Europe and Latin America. This means there’s still ample room for growth.
As they strategize for further expansion, all eyes are on Warner Bros. Discovery (WBD). Co-CEO Ted Sarandos mentioned that acquiring WBD’s studios, including HBO Max, is viewed as a strategic move that could significantly enrich their content library. This acquisition could enable Netflix to create more original films and shows, enhancing both their offerings and box office appeal.
Coming back to regulatory aspects, Sarandos expressed confidence in securing approval for the acquisition. They are already in talks with the Department of Justice and the European Commission and have filed the necessary paperwork for the deal.
Meanwhile, Netflix continues to diversify its programming, looking to add more live sports and licensed content. This strategy is aimed at strengthening their competitive position against tough rivals like YouTube. Sarandos noted that competing with YouTube touches every aspect of their business—from talent to ad revenue.
With evolving strategies and ambitious plans, Netflix is setting the stage to grab a larger share of the streaming pie. The competition is fierce, but their game plan suggests they are ready to play hard.
For further insights on media industry trends, you can visit [Nielsen](https://www.nielsen.com), which regularly publishes reports on viewer statistics and market dynamics.
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