Netflix refocuses on ads

Netflix heads into its April 16 earnings report with investors focused on two levers: selling more ads and spending enough on shows to keep viewers watching. (reuters.com) The report is Netflix’s first since it walked away from a proposed Warner Bros. Discovery deal, and Storyboard18 said shares were up about 13% this year and roughly 26% since the company stepped back. (storyboard18.com) Netflix has spent the past two years building an ad business from a low-cost plan introduced in late 2022 into a bigger pitch for marketers. In May 2025, the company said its ad-supported plan reached 94 million global monthly active users. (netflix.com) That ad tier is now central to Netflix’s growth story because subscriber gains have matured in many markets and the company has stopped making quarterly member additions its main scorecard. Netflix’s investor site shows it now steers attention toward revenue, profit and engagement in its regular earnings materials. (netflix.com) Advertisers are also watching whether Netflix can raise ad sales without stuffing in too many commercials. Netflix says members on its ad plan in the United States spend an average of 41 hours a month on the service, a figure it uses to argue that lighter ad loads can still support a premium business. (netflix.com) The company has been adding the plumbing needed to make that pitch credible. Netflix said in May 2025 that its in-house Netflix Ads Suite would expand buying options and measurement tools for brands, after saying in August 2024 that upfront ad commitments had jumped more than 150% from 2023 levels. (netflix.com 1) (netflix.com 2) Content spending remains the other half of the equation because ads only grow if people keep showing up for big releases. Reuters reported that analysts expect Netflix to emphasize content investment after the abandoned Warner Bros. Discovery pursuit, which would have added franchises including *Game of Thrones* and *Friends*. (reuters.com) Netflix has been telling advertisers that upcoming programming is part of the sales pitch. In its 2025-2026 upfront materials, the company highlighted the final season of *Stranger Things* and new seasons of *Bridgerton*, *Emily in Paris* and *Nobody Wants This* as inventory for marketers to buy against. (netflix.com) The next test comes after the market closes on April 16, when Netflix will have to show that ads are becoming a meaningful revenue stream without weakening the viewing experience that made the service big in the first place. (storyboard18.com)