Netflix Hits 325 Million Subscribers and Makes $1.5 Billion from Ads in 2025

Netflix Closes 2025 With 325 Million Subscribers and $1.5 Billion in Ad Revenue

Netflix is ending 2025 on a powerful note, reporting 325 million global subscribers and approximately $1.5 billion in advertising revenue, driven largely by the rapid adoption of its ad-supported tier and the rollout of AI-powered advertising tools.

According to a recent earnings report cited by Advanced Television, Netflix’s advertising revenue more than doubled year-over-year in 2025 marking a pivotal shift in how the streaming giant generates income. Once known almost exclusively for its subscription-only model, Netflix is now positioning advertising as a central pillar of its long-term growth strategy.

Advertising Emerges as a Core Growth Engine

The expansion of Netflix’s ad-supported tier has played a critical role in this revenue surge. Introduced as a lower-cost alternative to traditional subscriptions, the plan has attracted millions of users globally and opened up a new stream of income alongside monthly subscriptions.

This shift reflects a broader evolution in Netflix’s business model. By combining paid subscriptions with advertising, the company has diversified its revenue base and reduced reliance on subscription growth alone. The ad-supported tier has also proven effective in attracting users who may have otherwise skipped the platform entirely turning them into both viewers and advertising value.

Subscriber Growth and Strong Financial Performance

Alongside advertising gains, Netflix continues to demonstrate strong momentum in subscriber growth. By the close of 2025, the platform reached 325 million paid subscribers worldwide, reinforcing its dominance in the global streaming market.

Financially, Netflix reported total revenue of approximately $12 billion for the fourth quarter and full year of 2025, representing a 17–18% year-over-year increase. Pricing adjustments and tier diversification particularly the introduction of the ad-supported plan have contributed significantly to this growth.

With tens of millions of users opting for the lower-priced ad tier, Netflix is successfully capturing a broader audience while increasing overall earnings.

The Role of AI-Powered Advertising

Netflix’s advertising strategy is anchored by its $7.99 ad-supported plan, which provides access to most of its content library with limited commercial interruptions. The tier has quickly become one of the platform’s most popular options, especially among cost-conscious viewers.

To enhance advertiser value, Netflix is also investing heavily in AI-powered ad tools. These include personalised ad placements, interactive formats, and advanced performance analytics. The goal is to deliver more relevant ads for viewers while offering marketers precise targeting and measurable results.

Industry analysts suggest that this approach positions Netflix to capture a growing share of the global digital advertising market, with expectations that ad revenue could double again in 2026.

A Dual-Revenue Model That Works

Netflix’s ad-supported and premium tiers are designed to complement each other. Premium subscribers continue to drive higher subscription revenue, while ad-tier users contribute through targeted advertising. This dual-revenue approach allows Netflix to balance accessibility for users with sustainable revenue growth.

The result is a more resilient business model one that can adapt to changing consumer preferences and increasing competition in the streaming space.

Broader Business Strategy and Content Expansion

While advertising is grabbing headlines, content remains at the heart of Netflix’s appeal. The company continues to invest heavily in original films, series, podcasts, and strategic partnerships to retain engagement and attract new audiences.

Netflix has also been linked to discussions and strategic interest around expanding its content ecosystem, a move that could further strengthen its library and create new opportunities for advertisers seeking premium, highly engaged audiences.

Market Impact and Future Outlook

Investor reactions to Netflix’s 2025 performance have been mixed. While subscriber milestones and advertising growth are widely seen as positive signals, some analysts remain cautious about how expanding ad operations and future acquisitions may impact long-term profitability.

Looking ahead, Netflix expects advertising revenue to continue accelerating into 2026, reinforcing the idea that ads are no longer a side experiment but a core component of its business strategy.

For viewers, this means more flexible pricing options. For advertisers, it offers access to a massive, global audience spending hours each day on the platform.

The Bottom Line

Netflix’s 2025 performance highlights a company in transition. With ad revenue doubling to $1.5 billion and its subscriber base reaching 325 million, Netflix is evolving beyond a pure subscription service into a diversified entertainment and advertising powerhouse.

By combining premium content, AI-driven advertising tools, flexible pricing tiers, and strategic growth initiatives, Netflix is redefining what success looks like in the modern streaming economy. As advertising becomes firmly embedded in its financial model, the company is setting a blueprint for how streaming platforms can remain competitive, profitable, and scalable in a rapidly changing industry.