The news: Netflix disclosed that advertising revenues grew roughly 2.5 times in 2025 to about $1.5 billion, and management expects that figure could roughly double again in 2026.

• While ads remain a smaller share of total revenue than subscriptions, executives described advertising as one of Netflix’s fastest-growing businesses.
• Management cautioned that larger distribution or partnership opportunities, including any upside tied to Warner Bros. Discovery assets, are unlikely to materially influence ad revenues until 2027 or later.
• Executives repeatedly tied ad growth to product decisions, emphasizing that expanding content options is essential to unlocking further advertiser demand.

Driving growth: Netflix could be betting on investments in video podcasts, new ad-friendly formats, and a push into vertical video as drivers of ad revenue growth.