As somebody who hated TV commercials, nothing felt extra zen than a Netflix disc-by-mail subscription circa 2005. Not solely was the content material freed from adverts (as a result of it was a DVD); There was no promoting wherever, not even any art work on the paper jacket. It was pure cinema.
These days are over. DVDs do not exist, and the share of Netflix’s income from promoting is quickly growing. If Netflix’s personal claims are to be believed; Ad-supported tiers are watched by 250 million viewers each month. In response to my calculations, this equates to about 3% of humanity. 12 mostly wealthy countries Netflix will quickly serve adverts in 27 extra areas.
Netflix additionally claims This time last year Advert-supported Netflix reaches 94 million viewers, greater than double its claimed viewers. And the quantity in 2025 was greater than double. Claiming viewership numbers from May 2024. Which means the variety of viewers attributable to promoting is steadily growing 12 months by 12 months.
To throw at the least just a little chilly water on Netflix’s claims. I wrote a deadline earlier this year. In response to analysis agency Digital Eye, the ad-supported Netflix tier has solely grown 14% year-on-year. That is a giant distinction. To elucidate at the least a few of this distinction, word that Netflix bases its experiences for potential advertisers on viewer numbers somewhat than subscribers.
Digital i’s report additionally states that solely 40% of lively Netflix subscriptions are ad-supported, which can also be vital to bear in mind. Netflix nonetheless would not make as a lot cash from advertisers because it does from subscriber charges. In response to Last year’s Wall Street Journal articleThis compares to Netflix’s anticipated $2.15 billion in income from promoting final 12 months. Total revenue in 2025 is $45 billion—Lower than 5%.
So while you watch ad-supported Netflix, keep in mind that you are observing that display screen each hour. Up to 5 minutes of advertising—As much as about 8% of viewing time. That is sacrificing your life for one thing that solely accounts for five% of Netflix’s income.
