Netflix ads revenue is surging—and if you’re wondering how much Netflix made from ads in 2025 or whether the ad-supported plan is growing, the company just gave a clear answer. Netflix says its advertising business more than doubled from 2024 to 2025, reaching $1.5 billion. Executives also signaled the push is far from done, with new interactive and AI-powered ad formats planned as Netflix aims for another big leap in 2026.
Netflix ads revenue more than doubled to $1.5 billion in 2025
Netflix’s advertising business is no longer a side experiment. During an earnings call, Netflix co-CEO Greg Peters said the company’s ads revenue climbed to $1.5 billion in 2025, up more than double from the year before. Even more attention-grabbing: Netflix believes that number can rise fast again, with Peters projecting the advertising business could roughly double in 2026 to about $3 billion.
That forecast matters because it frames Netflix ads as a core growth engine, not just a “nice-to-have.” When a streaming giant publicly sets a target like this, it usually means internal teams are already building the tech, partnerships, and sales pipeline to chase it. For advertisers, it’s a signal that Netflix wants a bigger share of premium video ad budgets. For viewers, it’s a hint that the ad experience is about to evolve quickly.
The ad-supported Netflix plan keeps growing—and reaches 94 million monthly
A major reason Netflix can talk confidently about ad growth is scale. The company says its $7.99 per month ad-supported plan reaches more than 94 million people each month as of May 2025. That kind of reach is exactly what brands want when they shift money from traditional TV into streaming.
It also explains why Netflix keeps investing in advertising tools instead of treating ads as a temporary strategy. A larger ad-tier audience creates more ad inventory, which creates more revenue, which funds more content—then the cycle repeats. Netflix appears to be leaning into that flywheel, especially as competition in the “streaming wars” keeps pressure on subscription growth. If you’re choosing the cheaper plan, Netflix increasingly sees you as part of its long-term business model.
AI-powered Netflix ads are expanding beyond traditional commercials
Netflix doesn’t just want more ads—it wants different kinds of ads. Peters said Netflix plans to launch more AI-powered tools for advertisers this year. The company is building on a format that lets advertisers blend their ads with scenes from Netflix shows and movies, creating campaigns that feel more “native” to the viewing experience than a standard commercial break.
That approach is designed to do two things at once. First, it can boost attention, because viewers are less likely to mentally “check out” if the ad matches the tone and look of the content. Second, it can raise pricing, because more premium formats often command higher rates. If Netflix can prove these AI-driven placements perform well, it can justify charging advertisers more per impression, even before audience size grows further.
Interactive video ads are coming in 2026—and Netflix wants viewers to engage
Netflix is also preparing a major shift in how ads behave on the platform. Peters said the company expects to roll out interactive video ads in the second quarter of this year. While Netflix hasn’t detailed every feature publicly, “interactive” typically implies ads that encourage viewers to click, choose, vote, or explore—rather than just watch passively.
This is a big deal because it changes what advertisers can measure. Interactive formats can track engagement signals that go beyond views, which makes campaigns easier to optimize. It also changes what viewers experience, because interactive ads can feel less like interruptions and more like prompts. Whether that’s a welcome upgrade or an annoyance will depend on how Netflix implements it—and how frequently those formats appear.
Why Netflix is betting big on ads now
Netflix’s direction fits a broader reality: streaming is maturing. In the early years, growth came from adding subscribers at breakneck speed. Now, growth increasingly comes from new revenue streams, smarter pricing, and better monetization of existing audiences. Advertising is one of the most powerful levers Netflix has, because it can generate money from viewers who might not pay for higher-priced tiers.
Netflix is also fighting for time and attention in a crowded entertainment market. Ads can subsidize lower prices, keeping the service attractive to cost-conscious households. At the same time, the company can sell premium ad inventory alongside big releases and major live moments. That combination—scale, content, and improving ad tech—helps explain why Netflix is confident enough to publicly talk about doubling its ad business again.
What to watch next as Netflix ads evolve
If Netflix hits its stated trajectory, 2026 will be the year ads become impossible to ignore in the company’s story. Expect more experimentation with formats that feel tailored to streaming rather than copied from TV. Also expect Netflix to keep emphasizing tools that help advertisers create campaigns faster, target better, and measure outcomes more clearly—especially as AI capabilities expand across the industry.
For subscribers, the practical impact may show up in ad variety. You’ll likely see more than the standard “play a commercial, return to show” approach, especially once interactive units roll out. For marketers, Netflix is positioning itself as a premium ad environment with Hollywood-scale content and tech-forward formats—exactly the mix brands want when they’re chasing attention that traditional TV can’t guarantee anymore.
Netflix ads revenue reached $1.5 billion in 2025, and Netflix expects the business could jump toward $3 billion in 2026, powered by a growing ad-tier audience, AI-driven ad tools, and interactive video ads on the way.
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