Netflix expects revenue from advertising to hit $US3 billion in 2026.
The streaming giant says it is making “good progress” building out the ads business as a major monetisation priority.
The company announced its March quarter results, growing overall company revenue 16% to $US12.25 billion.
Netflix said its ads plan represented more than 60% of all March quarter sign ups within ads countries.
“We'll launch new products throughout 2026 to help advertisers assess the incrementality of their buys on Netflix, all verified by Netflix's trusted first-party data,” the company said in a letter to shareholders.
“Our improved capabilities are attracting many new advertising clients — we now work with over 4,000, up 70% year over year.”
Emarketer senior analyst Ross Benes said Netflix's next challenge will be to truly diversify away from having subscriptions account for almost the entirety of its revenue.
“The continual subscription price increases bely how reliant Netflix is on subscription revenues and consumers continuing to stick around despite rising frustration for getting less bang for their buck,” Benes said.
“Ads is growing but not as to the rate marketers expected more than four years ago when the ad tier was launched.
“As the company enters a new era without Reed Hastings, advertising will play a bigger role. There's no better time to amplify an ads business than right now with the upfronts looming.”
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