"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 overshadowed by the company's recent pursuit to acquire Warner Bros. Discovery's streaming and studio assets. However, beyond the headlines, metrics like customer engagement, subscriber numbers and advertising revenue paint a promising picture."
"Overall company revenue jumped almost 16% percent for 2025, while net income rose 26%. "We're making good progress and the opportunity ahead of us is massive," Co-CEO Greg Peters said on Tuesday's call with investors. Wall Street analysts, however, noted that ad revenue disclosure fell short of their previous forecasts, indicating that it could be taking longer than expected to get the ad business off the ground."
Netflix entered the advertising business later than most media peers, and its ad strategy is beginning to contribute meaningfully to results. 2025 advertising revenue exceeded $1.5 billion, about 3% of full-year revenue, and is expected to double in 2026. Overall company revenue rose almost 16% in 2025, while net income increased 26%. Executives described progress as strong and the ad opportunity as massive. Some Wall Street analysts said disclosed ad revenue fell short of prior forecasts and signaled the ad business may be developing more slowly than expected, while others welcomed clearer visibility into advertising's contribution to total growth.
Read at www.cnbc.com
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