Key Points
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Netflix’s ad revenue reached over $1.5 billion in 2025.
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The company surpassed 325 million paid memberships by the end of 2025.
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Ad-supported subscribers are less profitable compared to ad-free customers, with an estimated fill rate of just 45% for ads.
Netflix (NASDAQ: NFLX) introduced its first ad-supported plan in late 2022 as a strategy to attract more cost-conscious consumers amid slowing growth. By the end of 2025, the company reported over 190 million monthly active viewers who engage with ads, alongside significant ad revenue growth, marking a 2.5-fold increase from 2024.
Despite this success in user growth, ad-supported subscribers generate less revenue per user than ad-free counterparts, highlighting a gap that Netflix aims to close. The fill rate for ads stood at an estimated 45%, indicating substantial potential for revenue improvement. The rollout of the Netflix Ads Suite in 2025 aims to attract advertisers and enhance profitability.
