The news: Netflix’s advertising business hit several notable landmarks in 2025, establishing the company as a rising force in streaming advertising that is putting pressure on competitors to innovate.

• The streamer is on its way to passing $2 billion in ad revenues this year for the first time at a growth rate of 49.9%—by far the fastest of any streaming competitors, largely due to its nascence. We forecast growth will slow to 20.1% by 2027, when revenues will total $3.01 billion.
• Though Netflix stopped reporting subscriber numbers earlier this year, ad chief Amy Reinhard said in November that its ad-supported tier reaches 190 million monthly active viewers globally (a new metric for Netflix that estimates time watched across households).
• Netflix made strides into live sports, a crucial tentpole for advertising. The company became the exclusive streaming partner for the WWE and won rights to parts of the MLB season, the 2027 Women’s World Cup, and more.

But the company’s most dramatic move in 2025 was its offer to acquire Warner Bros. Discovery’s (WBD) streaming and studio assets, a deal that will fundamentally alter the entertainment landscape and give Netflix significant advertising power.

Netflix in 2026: The WBD acquisition will define Netflix’s next year. The $82.7 billion merger immediately fell under heavy public and political scrutiny, as it would give Netflix—already the largest subscription video service worldwide—a near insurmountable lead and control over some of the most popular global intellectual property.

• In September, we forecast that HBO Max will bring in $580 million in US ad revenues this year. While not an enormous revenue lift at face value, the consolidation of in-demand content on Netflix’s platform will enable the company to squeeze even more out of WBD assets. Consumers should expect higher subscription fees, and advertisers are likely to see rising ad costs.
• The acquisition would bring multimedia intellectual property like Wizarding World and DC Comics under its umbrella, along with iconic TV shows like “The Sopranos” and contemporary hit “The White Lotus.” The timing is fortuitous, as a new “Harry Potter” series is in the works at HBO and Netflix’s tentpole show “Stranger Things” is winding down.

What this means for marketers: Streaming consolidation of this magnitude will give Netflix far greater control over subscriptions and ad pricing.

Though the current Netflix CPM averages around $30, per our forecasts, the company broke into the scene with CPMs as high as $65 before Prime Video debuted ads and other platforms drove prices down. With control of WBD and the largest subscription streaming audience, Netflix could be emboldened to shoot once more for higher pricing.