"Netflix more than doubled its revenue derived from advertising in 2025 and says it is on track to achieve a similar rate of growth for the segment this year, according to an earnings statement. The streaming giant generated over $1.5 billion in ad revenue in 2025, its third year selling ads and a period where the business shifted focus to a suite of in-house ad tech after previously relying on Microsoft."
"Looking ahead, Netflix will continue developing its technology, sales and go-to-market capabilities for advertisers as it targets $3 billion in ad revenue for 2026. Closing the gap on the average revenue generated per membership for the ad-supported tier versus standard subscriptions is in focus, with executives positioning ad-tech improvements and greater access to first-party data as a way to speed up execution and refine areas like measurement."
Netflix more than doubled ad revenue to over $1.5 billion in 2025, its third year selling ads. The company shifted from relying on Microsoft to developing in-house ad tech and plans to grow ad revenue to $3 billion in 2026. Executives prioritize closing the revenue-per-membership gap for the ad-supported tier versus standard subscriptions through ad-tech improvements and first-party data to improve measurement and execution. Netflix is expanding ad formats and interactivity to improve advertiser outcomes and building partnerships, including an Amazon demand-side platform arrangement. A planned Warner Bros acquisition was amended to an all-cash $27.75-per-share deal amid a competing bid.
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