Netflix’s advertising business has reached a major turning point, more than doubling its revenue to $1.5 billion between 2024 and 2025. During the company’s most recent earnings call, co-CEO Greg Peters expressed high confidence in this trajectory, projecting that ad revenue will “roughly double again” in 2026 to reach approximately $3 billion. This rapid scaling highlights Netflix’s successful transition from a pure subscription model to a diversified media powerhouse.
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The surge in ad revenue is directly linked to the massive adoption of Netflix’s ad-supported tier. Priced at $7.99 per month, this plan now reaches over 94 million global monthly active users as of May 2025. This scale has turned Netflix into one of the largest ad-supported streaming environments in the world, providing the necessary reach to attract top-tier global brands.
To maintain this momentum, Netflix is expanding its toolkit for marketers. The company plans to launch new AI-powered tools designed to help brands integrate messages more seamlessly into specific scenes. Additionally, Netflix confirmed the rollout of interactive video ads in the second quarter of 2026, moving beyond static commercials to a more engaging, “conversational” ad format.
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Beyond its organic growth, Netflix is making aggressive moves to consolidate the streaming market. Reports indicate that the company has revised its bid to acquire Warner Bros. Discovery’s streaming and studio assets. In a strategic shift to match a rival offer from Paramount, Netflix has reportedly pivoted to an $83 billion all-cash offer. If successful, this acquisition would radically alter the competitive landscape by bringing WBD’s iconic IP library under the Netflix banner.
