Netflix has been trying to scale up its ad-supported subscriber base and seems to have made significant progress. During the platform’s earnings call on Thursday, Netflix co-CEO Greg Peters said the company is on track to achieve its subscriber goals for 2025. He highlighted that Netflix is working towards monetizing its ad inventory.
With the OTT giant on track to achieve critical ad subscriber scale for advertisers, Peters said the company is giving advertisers more effective ways to buy. Netflix will increase its ad-tier memberships in 2026 and beyond. Advertising has been a crucial business model for Netflix and media companies alike to achieve profitability for streaming.
After recording 34 percent growth in ad-supported membership compared to the same period last year, Netflix is looking forward to full-year revenue growth of 14 percent to 15 percent. Its net income increased from $1.49 billion to $2.15 billion in the second quarter of 2023. Moreover, the platform’s global paid membership rose 16.5 percent year-over-year to 278 million.
This increase may be attributed to Netflix’s original programming content strategy. The platform delivers personalized experiences based on user preferences, and viewing habits. Its marketing strategy offers various content choices to cater to diverse audience segments.
Moreover, Netflix has built its image as a content powerhouse with unique offerings. To back this, Netflix has invested in original productions, and compelling and exclusive content to stand apart from its competitors.
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