Brandon Fletcher
In the mid-2000s, I found solace in my Netflix disc-by-mail subscription. Unlike traditional television, it offered a commercial-free experience. The absence of ads, both in content and on the DVD sleeves, provided a level of enjoyment that felt unparalleled. It truly was an escape into pure cinema.
Fast forward to today, and that experience has dramatically changed. DVDs have become obsolete, and Netflix now derives a significant portion of its revenue from advertising. According to Netflix’s own statistics, their ad-supported tier attracts around 250 million viewers each month. This represents approximately 3% of the global population, all within the 12 affluent countries where Netflix currently displays ads, with plans to expand to 27 countries.
Last year, Netflix reported that their ad-supported service had reached 94 million viewers, indicating more than a twofold increase in viewership. This growth trend shows that the number of viewers engaging with ads is escalating each year.
To provide a more balanced perspective, Deadline reported earlier this year that the growth of the ad-supported tier was only 14% year-over-year, according to research by Digital i. This discrepancy raises questions about Netflix’s reported figures, which are primarily aimed at enticing potential advertisers and are based on viewer counts rather than subscriber numbers.
The Digital i report also highlighted that only 40% of active Netflix subscriptions include ads, underscoring the fact that Netflix is still earning far more from subscription fees than from advertising revenue. A Wall Street Journal article last year indicated that Netflix anticipated generating $2.15 billion from ad revenue, in contrast to an overall revenue projection of about $45 billion for 2025—amounting to less than 5% of their total earnings.
When you watch Netflix with ads, keep in mind that you could be viewing up to five minutes of advertisements every hour. This represents approximately 8% of your viewing time, translating to a portion of your life spent on content that contributes a mere 5% to Netflix’s revenue.
Ethan Carter
David Bridges
