Netflix Doubled Its Ad Revenue Last Year – And Expects To Do The Same In 2026

Recorded: Jan. 21, 2026, 4:03 a.m.

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Netflix Doubled Its Ad Revenue Last Year – And Expects To Do The Same In 2026 | AdExchanger

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Home streaming Netflix Doubled Its Ad Revenue Last Year – And Expects To Do The Same In 2026

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Netflix Doubled Its Ad Revenue Last Year – And Expects To Do The Same In 2026 By Alyssa Boyle

Tuesday, January 20th, 2026 – 7:35 pm
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Netflix dropped two sets of numbers this week: its 2025 full-year earnings and a revised offer for Warner Bros. Discovery.
During a call with investors on Tuesday, Netflix boasted that it beat its revenue expectations for last year, ending 2025 with $42.5 billion in revenue, a 16% year-over-year jump.
Of that, $1.5 billion came from advertising, which is a roughly 150% year-over-year revenue increase. (Keep in mind, however, that Netflix’s ads biz is only three years old and therefore growing from a smallish base.)
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 – a key metric for investors evaluating the long-term profitability of a media company.
Still, Netflix estimates its own share of TV viewing to be under 10% across the major global markets the company cares about, including Europe and Latin America, which means there’s still work to be done.

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All eyes on WBD
But what about the 90% of TV viewing that Netflix doesn’t touch? That’s what Warner Bros. Discovery is for.
“We’re working really hard to close the acquisition of Warner Bros. Studios and HBO Max, which we see as a strategic accelerant,” said Ted Sarandos, Netflix’s other co-CEO.
WBD’s studio would be a valuable asset for Netflix because it could then produce even more content, including films with a theatrical window of exclusivity that generate box-office sales.
Netflix is also confident in its ability to get the deal approved by regulators.
When, during the call, investor and analyst Rich Greenfield of Lightshed Partners asked Netflix’s executives why they’re feeling so self-assured, Sarandos noted that Netflix is in contact with both the Department of Justice in the US and the European Commission. Netflix has also submitted its HSR filing, which requires the parties involved in large proposed M&A transactions to notify the FTC and DOJ if the deal meets specified size thresholds.
In the meantime, Netflix remains focused on expanding its content programming slate to include more live sports and licensed content from Sony, Universal Studios, Paramount and others.
Overall, Netflix hopes that widening its slate and broadening its ad offerings will help the platform compete with its most formidable rivals – namely, YouTube.
“YouTube is TV,” Sarandos said. Within the media and entertainment industry, “we all compete with them in every dimension: for talent, for ad dollars, for subscription dollars.”
In that case, may the best media behemoth win.

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Netflix is aggressively pursuing a strategy of doubling its advertising revenue, projecting a near doubling of its ad sales to approximately $3 billion by 2026. This ambitious goal, revealed in recent financial disclosures and insights from company executives, is predicated on significant advancements in its advertising technology and a broadening content slate.

As of early 2026, Netflix reported full-year revenue of $42.5 billion, marking a 16% year-over-year growth driven predominantly by its expanding ad-supported tier. The company’s ad revenue reached $1.5 billion, representing a substantial 150% increase compared to the previous year. Notably, this business is still in its infancy, having only launched three years prior, suggesting substantial growth potential.

To fuel this expansion, Netflix is actively enhancing its advertising offerings. This includes making more of its first-party data—data generated directly from its user base—accessible to media buyers in a privacy-safe manner. The intent is to improve the performance of advertising campaigns within the platform. Furthermore, the company is testing interactive ad formats, anticipating their availability in Q2. This shift reflects a commitment to more engaging and effective ad experiences for its subscribers.

Underpinning these efforts is the continued development of Netflix’s in-house advertising technology stack. Co-CEO Greg Peters emphasized the “scale” of the business, indicating a focus on optimizing this infrastructure—a project that has been in development for several years. The company’s strategy centers around increasing monetization of its ad inventory, primarily by raising ad fill rates and boosting revenue per member.

However, Netflix acknowledges that its ad market share remains relatively small; estimates suggest it accounts for less than 10% of total TV viewing across major global markets like Europe and Latin America. This means significant work is required to broaden its reach. To achieve this the company is also pursuing the acquisition of Warner Bros. Discovery, which would provide the company with access to a robust production pipeline, including theatrical films with exclusive windows.

Looking ahead, Netflix intends to compete directly with industry giants like YouTube. The company demonstrated an understanding of the competitive landscape and is deploying a comprehensive strategy that combines expanded content production with the development of a more sophisticated advertising ecosystem. The continued success of Netflix’s doubling strategy hinges on its ability to effectively monetize its ad inventory, expand its user base and navigate the evolving regulatory environment.