Netflix's ad-supported tier grows past 250 million global users

Netflix is aggressively expanding its advertising ecosystem, with its $8.99-per-month ad-supported tier now serving over 250 million global users. This marks a dramatic surge from last year’s reported 94 million users, reinforcing the streaming giant’s shift toward a hybrid business model.

Ad revenue and engagement trends

During its 2026 upfront presentation, Netflix revealed it generated $1.5 billion in ad revenue in 2025—a figure that underscores the platform’s growing reliance on monetization beyond subscriptions. Analysts attribute this success to a combination of expanded inventory and improved targeting capabilities, which have made ad placements more appealing to brands. The company also reported that engagement on its ad-supported tier remains strong, with users watching an average of 20 minutes per session.

New ad formats on the horizon

Netflix isn’t stopping at traditional in-stream ads. The company announced plans to integrate advertisements into its recently launched vertical video feed within its mobile app, a feature designed to mirror the short-form video experiences popularized by competitors. Additionally, Netflix is embedding ads into its expanding podcast lineup, which it began rolling out in late 2024 in partnership with platforms like Spotify.

Strategic expansion beyond streaming

This multi-pronged approach reflects Netflix’s broader strategy to diversify revenue streams in a competitive market. By leveraging ad formats beyond linear TV-style commercials, the company aims to capture attention across multiple user touchpoints. Industry observers note that Netflix’s pivot aligns with shifting consumer habits, particularly among younger audiences who increasingly consume content in non-traditional formats.

What’s next for Netflix’s ad ecosystem?

Looking ahead, Netflix is expected to refine its ad targeting tools, potentially incorporating first-party data from its 260+ million global subscribers. The company may also explore dynamic ad insertion in live content, further blurring the lines between streaming and traditional television. As competition in the ad-supported streaming space intensifies, Netflix’s ability to balance user experience with monetization will likely determine its long-term success.