Key Points
- Netflix’s global reach is nearing 1 billion people, with 315 million paid subscribers and 200 billion hours viewed annually, according to data from WARC Media.
- The platform is expanding into live sports, cultural events, video podcasts and cloud gaming, with a potential Warner Bros Discovery deal cited as additive to scale.
- U.S. ad spending is led by shopping and CPG, while surveys show strong advertiser trust and high Gen Z purchase intent tied to show integrations.
Netflix is on track to capture nearly 10 percent of global connected TV (CTV) advertising spend by 2027 as its ads business accelerates from a nascent revenue stream into a central growth driver, according to a new report from WARC Media.
WARC forecasts Netflix will increase its share of global CTV ad spending from 3.7 percent in 2025 to 9.2 percent in 2027. The projection follows a year in which the company’s advertising revenue surpassed $1.5 billion in 2025, representing 3.3 percent of total revenue.
Netflix expects ad revenue to double to $3 billion in 2026 and reach $8 billion by 2030, according to Omdia data cited in WARC’s report.
Subscription fees remain the company’s primary revenue source, but the ad-supported tier has shifted from a limited test offering to what WARC describes as a primary engine for platform growth. Rather than relying on overall market expansion, Netflix is targeting share gains from competitors within the streaming ad market.
The company’s scale remains a key differentiator. Netflix reports its global audience reach is approaching 1 billion people, with members consuming approximately 200 billion hours of content annually. In the fourth quarter of 2025, global paid subscriptions reached 315 million. In markets including the United States and the United Kingdom, Netflix accounted for more than half of subscription video-on-demand viewing last year.
The report notes that Netflix is expanding beyond on-demand video into live sports, cultural events, video podcasts and cloud gaming, positioning the platform as a broader entertainment hub. A potential acquisition of Warner Bros Discovery (WBD) is also cited as a move that could enhance content depth and bundling opportunities, strengthening monetization of high-attention viewing.
In the United States, Sensor Tower data for the second quarter of 2025 shows the top advertising categories on Netflix were shopping at $82 million, consumer packaged goods at $78 million, financial services at $66 million, travel and tourism at $54 million and telecom at $44 million.
Perception metrics also support the platform’s ad ambitions. Advertisers rank Netflix as one of the most trustworthy global platforms, behind YouTube, Instagram and Google, according to Kantar. Among Gen Z consumers, 70 percent say they are more likely to trust brands that align with their favorite Netflix fandoms, and 74 percent report greater purchase intent when brands integrate with shows they follow.
