Netflix Expands Ad Business: Potential New Revenue Stream

Netflix has been making big moves in the advertising world with its new Netflix Ads Suite, giving advertisers more control and subscribers fewer interruptions with just four minutes of ads per hour. This new platform even tailors ad placement based on viewer behavior, not just content. And it’s not just limited to the US and Canada – it’s available in many ad-supported countries around the world.

To make it easier for advertisers to jump on board, Netflix has teamed up with big names like Google and The Trade Desk. Plus, they’ve got a new deal with Yahoo DSP in the works, making it even simpler to buy ads programmatically. With 94 million people already on the ad-supported plan, especially popular among 18 to 34-year-olds, it’s no wonder Netflix is projecting ad revenues to double by 2025 and hit over $9 billion by 2030.

But it’s not all smooth sailing in the ad world for Netflix. They’re facing some tough competition from Amazon and Disney. Amazon’s ad business is booming, thanks to Prime Video, Twitch, IMDb, and Live Sports, reaching a huge audience in the US with smart targeting tools. And Disney has a massive global audience, with millions of active users engaging with ads on platforms like Disney+ and Hulu.

Despite the competition, Netflix’s shares have been on the rise this year, outperforming the consumer discretionary sector. And while they’re trading at a premium, their projected revenues for 2025 look promising, with expected growth of over 14%. With a Zacks Rank of #3, it’s clear that Netflix is a player to watch in the streaming ad game.