Netflix has just had its ‘best ad sales quarter ever’, according to a letter sent by the streaming platform to shareholders.
While this is a fairly modest boast, with Netflix’s ad business only in its eighth quarter, experts seem confident that the business will continue to grow. According to JPMorgan analyst Doug Anmuth, Netflix’s ad revenue is on track to double from $1.4 billion in 2024 to $2.9 billion in 2025, and continue climbing to $4.2 billion next year.
According to Netflix, ads on Netflix are almost twice as likely to be seen as ads on linear TV and have twice as much engagement as the nearest competitor. The streaming platform also cites ads on Netflix to have 25% higher purchase intent lift compared to a control group.
This ad growth was supported by increased view share in Q3 2025. Compared with its post-pandemic low in Q4 2022, Netflix’s TV view share was up 15% in the US and 22% in the UK , making Q3 2025 the company’s highest ever quarterly view share in both markets.
The company’s letter to shareholders calls this a ‘solid foundation’ and states that it is ‘increasingly confident’ in ads thanks to planned innovations like ‘enhanced targeting’ and ‘integrating additional demand sources’.
Netflix’s advertising business launched in November 2023 with a cheaper, ad-supported tier of viewership. Earlier this year, Netflix added its own first party ad tech stack, Netflix Ads Suite, and integrated Amazon’s delivery service partner (DSP) program to expand its ad reach. Netflix has also announced plans to begin showing AI-generated ads in the middle of programming in 2026.
Despite a tax dispute in Brazil bringing down both profits and share prices, the earnings report showed positives in several key areas. Revenue was up by 17%, which was in line with the company’s forecast and is predicted to continue to rise in the next quarter.