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Netflix Projects Another Doubling of Ad Revenue After Hitting $1.5 Billion in 2025

Executives flagged a revenue gap on the ad tier, outlining adtech and data moves to improve monetization.

Overview

  • Co-CEO Greg Peters said ad revenue is expected to double again in 2026.
  • Management acknowledged the ad tier's average revenue per member trails the standard no-ads plan.
  • An industry estimate put Netflix’s 2025 ad fill rate at roughly 45%, indicating significant upside if sell-through improves.
  • The company is leaning on its Netflix Ads Suite, broader access to first-party data in 2026, and AI-powered interactive formats to boost demand.
  • Investors are weighing these plans alongside Netflix’s pursuit of Warner Bros. Discovery and rival interest from Paramount.