Netflix plans to double its advertising revenue in 2025, fueled by the global rollout of its proprietary ad tech stack, which is now live in the US and Canada and will reach 10+ markets this year. In its Q1 2025 earnings call, the company also laid out a broader strategy that includes AI-powered content discovery, live event programming, gaming expansion, and increased global production. With over 300 million paid households and more than 700 million viewers, Netflix says it’s still tapping only a small share of the global entertainment opportunity.
Netflix plans to double ad revenue, rolls out new Ad Tech in Key Markets
Netflix has begun using its own ad tech platform in the US and Canada and will extend it to ten more countries through 2025. Co-CEO Greg Peters called it “a big step” that gives advertisers more flexibility and makes it easier to work directly with the company.
The new system helps match ads to the right viewer, title, and moment using Netflix’s own viewer data — including content preferences, moods, and life stages. Advertisers can also bring in their own customer segments. Peters said the company expects to double its ad revenue this year through a mix of upfront deals, programmatic sales, and scatter market buys. So far, Netflix sees no signs of advertiser pullback, even with broader economic uncertainty.
$7.99 Ad Plan helps Netflix stay resilient in a soft economy
Netflix says it hasn’t seen viewers downgrade or cancel subscriptions despite financial pressures. Peters pointed to the platform’s value offering, especially the $7.99 ad-supported plan in its biggest markets, as a key to keeping subscribers engaged.
“Entertainment tends to hold up in tough times,” he said. Netflix’s data shows that engagement remains strong, and there have been no major shifts in which plans people choose. Having a tiered pricing model allows the company to stay relevant across economic segments.
Netflix to redesign TV homepage, add AI-powered search in 2025
Netflix revealed that even its top shows account for less than 1% of total viewing, which puts a spotlight on its recommendation engine. To improve how people find content, Netflix will launch its first major redesign of the TV homepage in over ten years.
The company is also testing interactive search tools powered by generative AI, which are expected to make content discovery more personal and intuitive. Peters said these updates are aimed at increasing member satisfaction and maximizing the reach of Netflix’s content across markets.
Netflix expands Live events with NFL Game, Boxing Rematch, and Global strategy
Netflix is investing in live content that drives buzz and sign-ups, even if it’s still a small share of viewing. Its 2025 lineup includes the Taylor-Serrano boxing rematch in July and a second NFL Christmas Day game.
Ted Sarandos, co-CEO, said live events have performed well and help Netflix stand out. While most of these efforts have focused on the U.S., Netflix plans to grow its live production capabilities for international expansion over the next few years.
Netflix eyes $140B Gaming market with focus on stories, GTA, Kids, and party games
Netflix is expanding into gaming gradually, targeting key segments of the $140 billion global market (excluding China and Russia). Though gaming remains a small share of its content budget, Netflix is focusing on four categories:
- Story-driven games based on Netflix IPs like Squid Game Unleashed
- High-profile third-party titles such as Grand Theft Auto
- Kids’ games without ads or in-app purchases
- Party games designed for shared play
Executives say the goal is to scale gaming at a sustainable pace, with high creative and brand alignment.
Netflix commits $3.5 billion to Mexico and Korea; now producing in 50 countries
Netflix continues to scale its global content operations. It now produces original programming in 50 countries and has announced $1 billion in investment in Mexico and $2.5 billion in Korean content.
Sarandos noted that Netflix not only exports content but also contributes to local economies by supporting tourism, jobs, and creative ecosystems. This local-to-global strategy helps Netflix manage risk while widening its global influence.
Netflix uses AI to improve VFX and production quality
Netflix is already using AI across production tasks like previsualization, VFX planning, and shot layout. Sarandos highlighted Pedro Perrimore, directed by Rodrigo Prieto, as a recent example — the film used AI-powered de-aging tech that was far more cost-effective than what was used in The Irishman.
“This is the same creator using better tools to do something that was nearly impossible five years ago,” Sarandos said. Netflix aims to use AI to benefit both creators and subscribers, not just to cut costs.
Netflix sees big growth headroom with less than 10% of TV hours captured
Despite its reach, Netflix says it captures less than 10% of all TV hours and only 6% of entertainment spending in its active markets. Executives say this leaves room for growth across formats, audiences, and geographies.
While no five-year forecast was given, Netflix leaders made it clear that the company is still in early innings of its global expansion—and that its new focus on ads, live content, gaming, and AI positions it well for the future.
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