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Netflix targets 2x ad revenue growth in 2025
The platform posted $10.54 billion in revenue for the first quarter of 2025, a healthy 12.5% jump from last year.
With a user base surpassing 300 million globally, Netflix is now aiming for $11.04 billion in revenue in Q2, and up to $44.5 billion by year-end, underscoring its confidence in a diversified and evolving business model.
As competition in the streaming wars intensifies, Netflix is doubling down on advertising - and it’s already seeing dividends.
The platform posted $10.54 billion in revenue for the first quarter of 2025, a healthy 12.5% jump from last year. It also reported $2.9 billion in net profit, with earnings per share at $6.61, comfortably ahead of market forecasts.
Netflix’s relatively new ad-supported tier is at the centre of this momentum. According to the company, 55% of new subscribers in supported markets are now opting for the ad-supported plan. Launched in late 2022, the plan offers an affordable entry point for users at $7.99/month, compared to the $24.99/month premium tier.
To support this growing business, Netflix has developed and launched its own advertising technology — the Netflix Ads Suite — which is already live in the US and Canada, with plans to expand globally this year. The company believes this infrastructure will help double its advertising revenue by the end of 2025.
Still, advertising forms a small part of Netflix’s overall revenue, with subscriptions remaining the core of the business. But the company’s pricing strategy, password-sharing clampdown, and growing ad inventory suggest a long-term play to build a robust dual-revenue model — ads and subscriptions.
In India, a key emerging market, Netflix is leaning heavily on local content and partnerships to attract new users, even as it faces strong competition from Amazon Prime Video, Disney+ Hotstar, and JioCinema.
With a user base surpassing 300 million globally, Netflix is now aiming for $11.04 billion in revenue in Q2, and up to $44.5 billion by year-end, underscoring its confidence in a diversified and evolving business model.
SPOTLIGHT
The leaders highlighted how AI is emerging as a critical enabler in this shift from marketing’s traditional focus on new customers to a more sustainable model of driving growth from existing accounts.
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