Netflix Hits 325 Million Subscribers and Makes $1.5 Billion from Ads in 2025

Netflix’s advertising business is now a central part of the company’s growth. In its latest earnings report according to Advanced Television, Netflix revealed that ad revenue more than doubled in 2025, reaching around $1.5 billion. This surge comes as the platform continues to expand its ad-supported tier, which has attracted millions of users worldwide and become a significant driver of revenue alongside traditional subscriptions.

The growth of Netflix’s ad business demonstrates how the streaming giant is increasingly relying on advertising to supplement its subscription income, giving the platform a more diversified financial base. While Netflix has long been known for its paid subscription model, the ad-supported tier has proven to be a powerful way to attract new users and generate additional revenue.

Alongside rising ad revenue, Netflix continues to report strong subscriber growth. By the end of 2025, the platform had reached 325 million paid subscribers globally, marking a notable milestone in its streaming dominance. Total revenue for the fourth quarter and the full year of 2025 came in at approximately $12 billion, representing a year-over-year increase of around 17–18%.

Netflix’s growth is not only about subscriber numbers. Pricing changes and tier options, particularly the ad-supported plan, have helped boost overall revenue. The report shows that the platform’s strategy of combining free, ad-supported access with paid tiers is paying off. With tens of millions of viewers now on the lower-priced ad-supported plan, Netflix is capturing users who might have skipped the service entirely and turning them into both audience and advertising revenue.

Netflix’s advertising strategy centres on its $7.99 ad-supported tier, which provides access to most of the streaming library with occasional ads. This tier has quickly become one of the platform’s most popular options, especially among viewers who prefer a lower-cost alternative to the standard subscription.

The company is also expanding its AI-powered ad tools, which are designed to make ads more personalised and engaging for viewers. Interactive ads, targeted placements, and advanced analytics allow marketers to reach their audiences more effectively while providing Netflix with an increasing share of the global digital advertising market. Analysts say this strategy positions Netflix to continue growing ad revenue 2025 and beyond, making the platform a more attractive option for both viewers and brands.

Netflix’s ad-supported tier works in tandem with paid subscriptions. Viewers who upgrade to premium plans often bring in higher subscription revenue, while ad-supported users contribute to the platform’s overall earnings through targeted advertising. This dual approach has allowed Netflix to strike a balance between accessibility for users and revenue growth for the company.

While ad revenue is capturing headlines, Netflix is also making strategic moves to strengthen its overall business. Content remains a key part of the platform’s appeal, with the company investing in original series, films, podcasts, and strategic partnerships to retain and grow its audience.

One of the most significant developments for Netflix is its ongoing acquisition of Warner Bros. Discovery, which could dramatically expand its content library. This move would provide more premium content options for subscribers and greater opportunities for advertisers looking to reach engaged audiences. The combination of expanded content, diversified tiers, and advertising innovations is helping Netflix build a more resilient business model in the competitive streaming market.

Investors have responded with mixed reactions to Netflix’s 2025 results. While the platform’s ad revenue growth and subscriber milestones are encouraging, some analysts remain cautious about how new acquisitions and ad strategies will affect long-term profitability.

Looking ahead, Netflix expects advertising revenue to roughly double again in 2026, reflecting continued growth of the ad-supported tier and expanding ad products. This suggests that advertising is not only supplementing revenue but becoming a core element of Netflix’s strategy. For users, this means more choices, including the option to watch content at lower cost with ads. For advertisers, it offers a rapidly growing platform to reach tens of millions of engaged viewers worldwide.

Netflix’s success in blending ad-supported subscriptions with traditional paid tiers shows how streaming platforms can balance accessibility, content, and revenue growth. As the company continues to innovate with AI-powered ads and expand its content library, it is clear that advertising is now a central piece of Netflix’s financial story.

RELATED: Tyler Perry Is On A Roll With These Films and Series For Netflix

Netflix’s ad revenue 2025 has doubled, and its subscriber base has reached 325 million, illustrating a platform that is evolving beyond subscriptions into a more diversified entertainment business. The ad-supported tier, combined with premium content, AI-powered ad tools, and strategic acquisitions, positions Netflix to maintain its dominance in the global streaming market while generating significant new revenue streams.

With advertising now firmly embedded in its growth strategy, Netflix is showing how streaming services can leverage multiple income sources to stay competitive and profitable in a fast-changing industry.