Netflix reported its fourth-quarter earnings, highlighting a strong focus on advertising revenue, which exceeded $1.5 billion in 2025 and is expected to double this year. Overall company revenue jumped almost 16%, with net income rising 26%. Despite lower ad revenue than forecasted, Wall Street analysts are optimistic about the advertising strategy’s potential.

Netflix’s late entry into the advertising game has paid off, with 325 million global subscribers at the end of 2025. The company added roughly 23 million subscribers in 2024, compared to 41 million in 2024 and almost 30 million in 2023. The shift towards ad-supported plans aims to drive growth, with a narrowing gap in revenue between ad-supported and standard plans.

While Netflix’s stock was down 4% on Wednesday, the company remains optimistic about the potential for advertising revenue growth. Despite initial slow progress, the company’s advertising strategy is gaining momentum and is expected to contribute significantly to overall revenue growth in the future. Backed by strong subscriber numbers, Netflix’s focus on advertising marks a strategic shift for the streaming giant.

Read more at CNBC: Netflix’s advertising strategy is starting to pay off