Netflix grew its overall revenue by 17% year over year – a huge jump from Q2 last year, when that number was just 3%. Now that the platform’s ads plan is hitting a certain level of scale, ad revenue is becoming a source of profit.
Netflix’s biggest hope for its imminent ad tier is increasing revenue not from ads themselves, but by attracting new sign-ups with a cheaper subscription option. It chose Microsoft as its ad sales partner for flexibility in building out the tech, and it hopes new plans for password sharing enforcement will help keep up subscriber monetization, too.
