Netflix’s ad tier has become a central driver of platform growth, with the company expected to capture around 10% of global connected TV (CTV) ad spend by 2027.
According to a WARC Media report, Netflix’s advertising business is expanding rapidly, with ad revenues projected to reach $3 billion this year. By the end of 2025, the platform had roughly 325 million paid subscribers, a global audience of over one billion, and 200 billion hours of content consumed annually.
The platform has introduced a monthly active viewers (MAV) metric, counting members who watch at least one minute of ads per month.
The platform is expanding beyond video into adjacent areas such as podcasts, music partnerships, live sports, and gaming integrations. Advertisers perceive Netflix as a high-quality and trustworthy platform, with Gen Z showing strong engagement with brand integrations tied to Netflix IP.
CTV ad share is forecast to rise from 3.7% in 2025 to 9.2% in 2027. A potential Warner Bros. Discovery acquisition could further expand content and bundling strategies.
Meanwhile, structural shifts in the SVOD market ,including declining per-user viewing time and competition from free platforms like YouTube, are pushing the platform to focus on premium storytelling and differentiation.
