Netflix said advertising is a key growth driver, projecting $3bn in ad revenue in 2026 (about double 2025) and reporting more than 4,000 advertisers after a 70%+ year-on-year increase in 2025. On its Q1 earnings call, Netflix reported quarterly revenue up 16% to $12.3bn, noted ad-supported plans represented over 60% of Q1 sign-ups where available, and highlighted increased use of its Netflix Ads Suite with programmatic expected to exceed 50% of non-live ads. The company also confirmed co-founder Reed Hastings is stepping down as chairman and reiterated a standalone strategy after withdrawing from a potential Warner Bros. Discovery assets deal.
Netflix is effectively building a second P&L beside subscriptions—and doing it with the playbook TV never fully nailed: scaled reach (190M+ monthly active ad viewers), improving data, and increasingly programmatic pipes. If programmatic clears 50% of non-live, Netflix becomes less a bespoke IO shop and more a performance-friendly marketplace, pulling budgets from CTV rivals and linear faster. The WBD walk-away underscores confidence: Netflix is betting its own ad stack + pricing power beats costly consolidation. The emerging meme: “streaming winners are ad platforms with content,” not the other way around.
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