Netflix is on track to “roughly” double advertising revenue in 2025 as it closes deals with major agencies.
The streaming content platform said a key focus this year is enhancing capabilities for advertisers.
The actual dollar amount of revenue from advertising hasn’t yet been revealed but it is understood to be small, and not yet “meaningful” in comparison to subscriptions.
Overall, Netflix grew revenue almost 16% to $US11.079 billion in the June quarter and has now increased its 2025 full year forecast to $44.8 billion to $45.2 billion, up from $43.5 billion to $44.5 billion.
“We completed the rollout of the Netflix Ads Suite, our in-house first-party ad tech platform, to all of our ads markets and early results are in-line with our expectations,” Netflix said when announcing June quarter results.
“We believe our ad tech platform is foundational to our long-term ads strategy and, over time, will enable us to offer better measurement, enhanced targeting, innovative ad formats and expanded programmatic capabilities.”
Netflix said it has closed the majority of deals with major agencies from the US upfront this year.
“We’re pleased with the results which are consistent with our goal to roughly double ads revenue this year,” the company said in a letter to shareholders.
“Clients are excited about our growing scale, the successful rollout of our tech stack, as well as our upcoming programming slate.”
At the May upfront, Netflix revealed it now had more than 94 millions global monthly active users of its advertising-supported subscription tier.
Emarketer principal analyst Paul Verna said Netflix continues a winning streak going back several quarters and cements its place as the leader among streaming services.
“The results were fuelled by price increases and continued growth in its ad business, leading Netflix to raise its revenue guidance and margin for the second half of the year,” he said.
“With a slate of flagship shows coming up later in 2025 and forays into sports, live TV, and potentially concerts, Netflix has many levers to pull to keep up the momentum."
The numbers:
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