Netflix aims to double ad revenue in 2025​; Ad-supported tier drives 55% of new sign-ups

New Delhi: Netflix has reported a strong start to 2025, with first-quarter revenues reaching $10.54 billion, marking a 12.5% year-over-year increase. 

The company's net income stood at $2.9 billion, and earnings per share were $6.61, surpassing analyst expectations. 

A significant contributor to this growth is the company's advertising segment. Netflix's ad-supported tier, introduced in late 2022, now accounts for 55% of new sign-ups in markets where it's available. 

The company anticipates its advertising revenue to roughly double in 2025, supported by the rollout of its proprietary ad tech platform, Netflix Ads Suite, which launched in the US and Canada and is set to expand to other regions in the coming months. 

However, it added that advertising revenue is "still very small relative to subscription revenue."

In addition to advertising, subscription revenues have seen an uptick due to recent price adjustments. The ad-supported plan is now priced at $7.99 per month, while the premium tier stands at $24.99. These pricing strategies, combined with efforts to curb password sharing, have contributed to the company's revenue growth. 

While Netflix no longer discloses quarterly subscriber numbers, it's noteworthy that the company ended 2024 with over 300 million subscribers globally. The Asia-Pacific region, including India, remains a key market for Netflix's growth strategy. In India, the company continues to invest in localised content and partnerships to expand its user base.

Looking ahead, Netflix projects second-quarter revenues of $11.04 billion and maintains its full-year revenue guidance between $43.5 billion and $44.5 billion. 

The company remains optimistic about its growth trajectory, focusing on enhancing its content offerings and expanding its advertising capabilities.