Netflix Ad Revenue Increased 250% in 2025: What It Means for Streaming
Last year was a big one for Netflix; the streaming giant announced having nearly a billion worldwide viewers, $45.2 billion overall 2025 revenue, including $1.5 billion in ad revenue in 2025 — a 2.5x increase from the previous year.
Written by Aleksander Hougen (Chief Editor)
Reviewed by Aleksander Hougen (Chief Editor)
Last Updated:
Netflix continues to be the streaming powerhouse, despite its stiff competition, with over 325 million paid subscribers, serving nearly 1 billion people globally, according to Netflix’s Jan. 20, 2026 shareholders letter.
The company has more to be happy about, announcing in its very first line that it “met or exceeded all” of its financial objectives, with $45.2 billion total 2025 revenue and a 250% increase to its ad revenue from the previous year, to $1.5 billion.
More than doubling its ad revenue isn’t coming from left field.
Netflix introduced its ad-based plan in November 2022, which reached 70 million subscribers in November 2024 and 94 million subscribers in May 2025. In-between November 2022 and May 2025, the company started cracking down on password sharing in 2023, then Netflix removed its cheapest ad-free Basic plan in July 2024.
Add in the general economic slowdown and uncertainty, it’s no surprise more people are willing to sit through ads for a cheaper monthly cost.
Now Netflix users have the choice of paying $17.99 for Standard without ads or $7.99 for Standard with ads. If Netflix users opt for Standard with ads, they experience four to five minutes of ads for every hour of streaming.
All this is great news for Netflix and its shareholders, and not so great news for streaming users; not unsurprisingly, one of Netflix’s 2026 goals is “further growing our ads business” (as well as “working to close our acquisition of Warner Bros.”).
Netflix can increase its ad revenue in two main ways: either getting more ad-paying subscribers, or increasing the number of ads it shows to viewers — like Amazon Prime did when it doubled ad time in 2024.
As more streaming services are consolidating under giant parent companies, streaming services also often feel empowered to increase pricing.
Streaming viewers can often face few good alternative options. Luckily, there are still a few. Viewers could opt for Howdy, Roku’s $3 ad-free streaming service — but it doesn’t have a strong streaming selection like Netflix. They could also opt for free streaming services with ads, like Tubi or Pluto TV, but still have to suffer through ads. You can also use a VPN to enjoy free streaming services in certain countries, like BBC iPlayer in the U.K.
If you’re looking for more tips in reducing how much you pay for streaming, check out our streaming cost-cutting guide. You can also subscribe to our newsletter below for the latest streaming news and tips.