Netflix might show you more ads to boost its revenue
What's the story
Netflix is betting big on its advertising business. The company has announced plans to double its ad revenue this year. Netflix's executives revealed this strategy during an earnings call with investors. They didn't confirm if they'd increase ad load for existing customers, but did say that interactive promotions would be added to content soon.
Growth strategy
95 billion hours of content consumed in H1
Netflix launched its ad-supported plan in late 2022, which has since grown to 94 million users. The company is now looking to monetize this engagement through both subscriptions and advertising revenue. In the first half of 2025 alone, viewers spent a whopping 95 billion hours on Netflix. Its most-watched series was British drama Adolescence with 145 million views, followed by other popular shows like Squid Game and Ginny & Georgia.
Tech advancements
Interactive ads will be added to Netflix soon
Netflix has launched its own first-party ad tech platform globally, making it easier to sell more ads. Greg Peters, co-CEO of Netflix, said the move would offer a range of features for advertisers. He also announced that interactive ads will be coming to Netflix later this year. These are already being used by competitors like Amazon Prime Video and Hulu.
Revenue prospects
Live programming part of ad strategy
Netflix's ad strategy also includes live programming, with upcoming events like NFL games on Christmas Day and a boxing match between Canelo Alvarez and Terence Crawford. These big live events are attractive to advertisers due to their large real-time audiences. While Netflix didn't specify how much of its estimated $45.2 billion revenue for the year would come from ads, analysts expect it could exceed $4 billion.
AI integration
AI technology for content creation
Along with ads, Netflix is also focusing on artificial intelligence (AI) technology. Ted Sarandos, co-CEO of Netflix, said they see a huge opportunity in using AI to improve content creation. He highlighted the company's Argentinian sci-fi series El Eternauta as an example of this tech integration. The show features what Sarandos called "the very first GenAI final footage to appear on screen" in a Netflix production.