Everything appears to be going well for the streaming service, much like the currently number one popular song from the animated musical movie “KPop Demon Hunters.”
Despite raising the cost of its subscriptions, Netflix is seeing an increase in both its member base and ad revenue.
Netflix made over $11 billion in total revenue last quarter, increasing 15.9% year over year, according to its Q2 figures, which were released on Thursday. With the exception of a minor decline to 12.5% growth in Q1, that growth rate is in line with prior quarters.
CFO Spencer Neumann informed investors that advertising still accounts for a “pretty small” percentage of total revenue, despite the fact that Netflix normally doesn’t disclose its ad revenue figures.
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However, he continued, ad revenues are still on course to double by the end of 2025 and have already surpassed forecasts for this time of year.
Methods of doing it, done, done
The Netflix Ad Suite is now accessible in all 12 ad-supported countries—the US, UK, Canada, Australia, Brazil, France, Germany, Italy, Japan, Mexico, and South Korea—as Netflix stated in its upfront presentation.
Netflix has already witnessed a rise in programmatic buying following what Co-CEO Greg Peters described as a “generally smooth” launch across these markets. Additionally, the company has received encouraging comments from advertisers who appreciate how simple it is to purchase advertising directly.
According to Peters, Netflix intends to enhance targeting, measurement, personalization, and interaction in the future by collaborating with advertisers and other third-party data sources, as well as by introducing additional demand sources (like as their recent agreement with Yahoo DSP).
Speaking of upfronts, Netflix’s Q2 letter to shareholders states that it has already finalized the majority of its significant agency agreements for the season. According to Peters, Netflix’s aim goal has been met or slightly exceeded thus far.
However, Netflix must now provide engagement as it closes ad deals.
One investor expressed worries about the decline in average involvement per member during Thursday’s presentation. More than 95 billion hours of entertainment were viewed by Netflix members in the first half of 2025, a 1% increase from the previous year.
According to Peters, Netflix evaluates interaction on a household basis by eliminating shared or borrowed accounts, which contributes to the metric’s weak showing. According to him, this has maintained engagement “relatively steady” over the previous few years.
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Despite this, Netflix anticipates a better second half of the year in terms of viewer engagement, pointing to live broadcasts like the September Canelo vs. Crawford boxing event, returning shows, and much awaited movie titles like “Stranger Things” and “Happy Gilmore 2.”
According to co-CEO Ted Sarandos, Netflix hopes to someday extend its reach to events outside of the United States now that the majority of the platform’s live streaming issues have been resolved.
But that will be somewhat helpful.
Similar to how Netflix uses outside production companies to assist in creating its own original content—Sony Pictures Animation produced Netflix’s most recent hit, “KPop Demon Hunters”—the streaming service intends to keep collaborating with broadcast partners for live events, such as CBS for the NFL Christmas Day games.
“We view it as a tool for scaling, rather than compensating for a deficiency in a particular department within the organization,” Sarandos stated.
However, there may still be some issues to work out.
Peters continued, “When we start something new, we pretty much expect that we’re not going to be brilliant at it at first.” “It’s our responsibility to go out there and gain experience.”
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