Daijiworld Media Network – Los Gatos
Los Gatos, Jan 21: Streaming giant Netflix has reported ad revenue of over $1.5 billion in 2025, more than doubling its advertising business in just the third year since it introduced ads on its platform.
The company disclosed its advertising earnings for the first time in its shareholder letter released on Tuesday, January 21, 2026, revealing that ad revenue grew 2.5 times compared to 2024. Netflix now expects its advertising income to double again in 2026.
Buoyed by strong ad performance, Netflix forecast total revenue of $50.7 billion to $51.7 billion for 2026, marking a year-on-year growth of 12% to 14%.
Advertising emerged as a key driver of Netflix’s robust financial performance in the fourth quarter of 2025, with revenue rising 18% year-on-year to $12.1 billion. The company cited advertising, membership growth and higher subscription pricing as the primary contributors.
For the full year, Netflix posted revenue of $45.2 billion and an operating margin of 29.5%, meeting or exceeding all its financial targets.
In 2025, Netflix also began testing artificial intelligence tools to help advertisers create customised ads linked to Netflix’s intellectual property. The company introduced automated workflows for ad concepts and used AI models to streamline campaign planning.
Senior eMarketer analyst Ross Benes said advertising will become an increasingly important focus for Netflix. However, he noted that despite rapid growth, Netflix’s ad revenue is expected to account for less than 10% of total US connected TV advertising revenue in the coming years.
Benes also pointed out that investors remain cautious about Netflix’s pending acquisition of Warner Bros. Discovery (WBD). Netflix recently revised the merger agreement to an all-cash deal valued at $27.75 per WBD share, replacing the earlier mix of cash and stock.
Netflix currently has over 325 million paid memberships worldwide, serving nearly one billion viewers. Its redesigned TV interface now integrates advertising alongside video podcasts, live events and games, as the company pushes to evolve into a comprehensive entertainment hub.