Netflix is enjoying a strong year, with second-quarter revenue climbing to $11.08 billion, marking a 16% increase from the previous year. Net income rose sharply to around $3.1 billion, with earnings per share at $7.19, surpassing analysts’ expectations. This performance has led the company to raise its full-year revenue forecast to between $44.8 and $45.2 billion, signaling confidence in its momentum.
The standout feature of Netflix’s earnings is the explosive growth of its ad-supported tier. The company says ad revenue is on track to double by the end of 2025. With 94 million monthly active users on the ad tier and the completion of its in-house Ads Suite rollout, Netflix is expanding its advertising reach with more precise targeting and programmatic sales. The success of upfront ad deals and partnerships with platforms like Yahoo’s DSP are further fueling this growth.
Nearly half of new U.S. subscribers are opting for the ad-supported plan, a major shift from earlier years when most users paid to avoid ads. Total watch time reached 95 billion hours in the first half of the year, with one-third of that time spent watching non-English content. This broad audience appeal is giving advertisers access to global markets through Netflix’s platform, making it an increasingly attractive partner for ad spend.
Netflix is also experimenting with new ad formats, such as interactive and pause-screen ads, expected to roll out later this year. This shows a deeper commitment to making advertising a major part of its long-term business model. What started as a cautious step into ad-supported streaming is quickly becoming a central pillar of Netflix’s future strategy.
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