US EditionNetflix's Advertising Strategy Shift Is Starting to Pay Off
Netflix's ad revenue reached $1.5 billion in 2025 driven by growth in ad-supported subscriptions and plans to introduce interactive ads and AI tools in 2026.
- On Tuesday, Netflix said advertising revenue more than doubled to $1.5 billion from 2024 to 2025, disclosed in its Q4 and full-year 2025 earnings report on Jan. 20, 2026.
- The $7.99 ad-supported plan reached more than 94 million monthly users by May 2025, and estimates put roughly 40% of active users on ad plans last year, raising revenue to about $1 per user.
- Co-CEO Greg Peters said the advertising business should roughly double in 2026 to about $3 billion and the company plans interactive video ads in the second quarter plus AI-powered advertiser tools this year.
- Investors reacted, with Netflix stock trading down about 4% on Wednesday after forecasts fell short and ad-supported subscriptions accounted for a little over 3% of sales.
- Netflix is expanding ad inventory by adding video podcasts from Spotify, iHeartRadio, and Barstool Sports while overall revenue rose to $12.05 billion with 325 million global subscribers in 2025.
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Netflix earned $1.5 billion from ads in 2025
Netflix's advertising business more than doubled its advertising revenue to $1.5 billion from 2024 to 2025 - and it's on track to keep growing. "We expect that [advertising] business to roughly double again in '26 to about $3 billion," Netflix co-CEO Greg Peters said during an earnings call on Tuesday, hours ahead of its live viewer voting-enabled Star Search event. "We're making good progress, and the opportunity ahead of us is massive." The ju…
Netflix's advertising strategy is starting to pay off
The post Netflix’s advertising strategy is starting to pay off appeared on BitcoinEthereumNews.com. A drone view shows Netflix logos on buildings in the Hollywood neighborhood in Los Angeles, California, U.S., Jan. 20, 2026. Daniel Cole | Reuters Netflix jumped into the advertising business later than its media peers, but its strategy shift is starting to pay off. This week Netflix reported its fourth-quarter earnings, which were mostly overshad…
Image by Bigstock For the first time in its history, Netflix decided to show the full numbers of its advertising business. And the data leaves no room for interpretations, where the platform generated more than $1.5 billion in ad revenue during the last year, 2.5 times the figure recorded in 2024. Although today advertising represents just 3 percent of its total turnover, estimated at $45.2 billion, the message is clear; this is just beginning. …
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