"Netflix didn't provide an updated number of ad-supported sign-ups, although did share back in November that it has 190 million monthly active viewers on its ad tier. Now that Netflix's ads business has "grown to scale," said Co-CEO Greg Peters, "our main focus is increasing the monetization of that inventory." Netflix expects its ad revenue to nearly double again this year and hit roughly $3 billion."
"Stack Attack To drum up more demand from media buyers in 2026, Netflix is adding more data and ad formats to its product suite. "We're making more Netflix first-party data accessible - in a privacy-safe way - for assessing media investments," Peters said, noting that this should help improve ad performance. Netflix has also been testing more interactive ad formats to improve outcomes and intends to make those units available in Q2."
"As for the infrastructure supporting Netflix's advertising business, "we're continuing to build out that ad tech stack," Peters said, referring to its in-house tech stack, which has been in the works for a couple of years. Although Netflix was vague about the data, tech and ad formats it plans to unveil this year, the monetization play is clear. Enhancing ad targeting and measurement will help Netflix raise ad fill rates, Peters said, which should, in turn, boost ad revenue per member."
Netflix ended 2025 with $42.5 billion in revenue, a 16% year-over-year increase. Advertising revenue reached $1.5 billion, roughly a 150% year-over-year jump, and ad revenue is expected to reach about $3 billion in 2026. The ad-supported tier has 190 million monthly active viewers as of November. Netflix plans to increase monetization of ad inventory by making more first-party data accessible in a privacy-safe way, testing interactive ad formats with availability planned for Q2, and building out an in-house ad tech stack to improve targeting, measurement, ad fill rates, and ad revenue per member.
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