Netflix is set to position advertising as a significant secondary revenue stream alongside subscriptions, altering the company’s long-standing reliance on subscriber income.
According to data from Omdia, Netflix’s advertising revenue exceeded $1.5bn in 2025, representing 3.3% of its total revenue. The company aims to double that figure to $3 billion this year and grow it to $8 billion by 2030.
The company is projected to capture close to a tenth of global connected TV (CTV) advertising spend by 2027, as the streaming giant accelerates the expansion of its advertising business. This is according to the latest Platform Insights report by WARC Media.
According to WARC Media global CTV advertising spend data, Netflix’s share of worldwide CTV ad investment is forecast to rise from 3.7% in 2025 to 9.2% in 2027, marking one of the fastest share gains among major streaming platforms.
The growth comes as the company scales its ad-supported tier and targets competitor budgets rather than relying solely on overall market expansion.
Recall that Netflix launched its ad-supported tier in late 2022, marking a strategic shift from its previous ad-free model.
A potential acquisition of Warner Bros. Discovery could further strengthen Netflix’s advertising position. Such a deal would expand its content portfolio and bundling capabilities, increasing opportunities to monetise high-attention viewing across a broader library of intellectual property.
While no transaction has been confirmed, industry analysts suggest that greater content scale would enhance Netflix’s leverage in the premium video ad market.
Netflix is also diversifying its content and engagement strategy as part of its broader monetisation push.
The company is entering the video podcast market, describing the format as an evolution of the “modern talk show,” and is increasing investment in cloud gaming across mobile and connected TV devices. These initiatives are designed to extend intellectual property, deepen user retention and create additional engagement surfaces.
Both areas could generate incremental advertising opportunities over time.
The projected rise to 9.2% global CTV share by 2027 would place Netflix among the leading players in connected TV advertising worldwide. The increase reflects both advertiser migration toward premium streaming environments and Netflix’s growing ability to compete directly with established ad-supported broadcasters and digital video platforms.
With ad revenue targeted at $8 billion by 2030, Netflix’s advertising business is transitioning from an experimental offering to a core component of its long-term growth strategy.