Netflix has kicked off 2025 on a strong note, reporting a 12.5% rise in first-quarter revenue to $10.54 billion, driven in large part by the growing popularity of its ad-supported subscription model. Net profit for the quarter stood at $2.9 billion, with earnings per share reaching $ 6.61, surpassing analyst expectations.
The company’s lower-priced, ad-supported tier, introduced in late 2022, is now proving to be a significant growth driver. More than half of new subscribers in markets where the plan is available are opting for this budget-friendly alternative, which is priced at $7.99 per month, compared to the $24.99 premium plan.
To bolster this offering, Netflix has rolled out its own in-house advertising platform, the Netflix Ads Suite. Currently active in the U.S. and Canada, the system is expected to be expanded globally over the course of the year. The company projects that advertising revenue could double by the end of 2025 as a result of this investment.
Despite this push into advertising, the bulk of Netflix’s income still comes from subscriptions. However, recent moves — including a crackdown on password sharing and a more diversified pricing model — signal a broader strategy to build a sustainable dual-revenue structure.
In India, one of its fastest-growing markets, Netflix continues to focus on localised content and strategic partnerships to gain an edge in a crowded field that includes Amazon Prime Video, Disney+ Hotstar, and JioCinema.
With its global user base now exceeding 300 million, Netflix is aiming for $11.04 billion in revenue for the second quarter and a full-year target of $44.5 billion. The company’s outlook suggests confidence in a long-term strategy that blends affordability, technology, and global reach.