"Netflix's advertising business, once considered a side experiment, saw its best quarter in the July-September period, proving it is now a reliable revenue stream in addition to subscription. Netflix said it doubled its U.S. upfront commitments, or pre-sold ad inventory for the coming year, during the quarter. Peters said Netflix's in-house tech will soon support interactive ads that let viewers engage directly with campaigns."
"For the July-September quarter, total revenue rose 17 percent year-over-year to $11.5 billion, while profit climbed 8 percent to $2.5 billion. Both figures came in below Wall Street expectations, primarily due to a one-time $619 million tax expense in Brazil, sending the company's share price to fall 10 percent today. Without disclosing the exact subscriber number, co-CEO Ted Sarandos said the company now serves nearly a billion viewers globally."
Netflix has shifted focus away from disclosing subscriber numbers to highlighting advertising, generative A.I., and real-world ventures as core growth areas. Executives describe the company as being in a "walk" phase after establishing business fundamentals and attracting advertiser interest. Advertising produced its best quarter in July–September, with doubled U.S. upfront commitments and plans for interactive ad formats. Netflix is testing live interactivity and real-time voting for events, with Star Search targeted for 2026. Quarterly revenue reached $11.5 billion, up 17 percent, and profit rose to $2.5 billion, though results trailed expectations due to a $619 million Brazil tax expense.
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