Netflix earned $1.5B from ads in 2025 (www.theverge.com)

Netflix's advertising revenue surged to $1.5 billion in 2025, more than doubling from the previous year, as the company's ad-supported subscription plan captured over 94 million monthly subscribers. Co-CEO Greg Peters indicated a hopeful growth trajectory, projecting the ad business could reach approximately $3 billion in 2026. This expansion aligns with Netflix's strategy to enhance advertising capabilities, including the upcoming launch of AI-powered tools that allow seamless integration of ads with content, as well as interactive video ads slated for rollout in Q2 2026. The significant revenue growth not only underscores Netflix's successful pivot to ad-supported streaming but also highlights the increasing monetization opportunities within the digital content landscape. With an overall revenue increase to $12.05 billion and a growing subscriber base of 325 million, Netflix is keen on diversifying its content offerings, including video podcasts from platforms like Spotify and new seasons of popular series. The strategic acquisition of Warner Bros.' studio adds further potential for cross-promotional advertising within a broader content framework, positioning Netflix as a key player in the AI and advertising landscape within the entertainment industry.