Netflix has once again cemented its position as the global streaming leader with a stellar second quarter, reporting record-setting revenue and earnings. On Thursday, the company announced a 15.9% year-over-year revenue increase to $11.08 billion, surpassing Wall Street expectations. Earnings per share also shot up 47% to $7.19, beating Bloomberg’s analyst forecast of $7.09.
But the excitement doesn’t stop there—Netflix also raised its full-year 2025 revenue forecast to between $44.8 billion and $45.2 billion, reflecting continued growth momentum driven by subscriber gains and a surging ad business.
Even without reporting specific subscriber numbers this quarter—a change that began earlier this year—Netflix’s growth trajectory remains strong. Third-party data from Antenna shows that nearly 50% of new U.S. subscribers from January to May chose the ad-supported tier, highlighting the success of its $8/month offering. This affordable ad tier now stands out as a strong value against rivals like Disney+, Hulu, and HBO Max.
Netflix has big plans for advertising. Executives reiterated that ad revenue is expected to double in 2025, with interactive ads set to launch in the second half of the year. This positions the company not just as an entertainment leader, but a growing player in digital advertising.
In addition, the streaming giant is doubling down on live content. Upcoming high-profile events include:
- An NFL Christmas Day game
- A Canelo Alvarez vs. Terence Crawford boxing match in September
- A reboot of the classic talent show “Star Search”
These initiatives underscore Netflix’s ambition to be more than just a library of binge-worthy shows—it’s building a comprehensive, real-time entertainment ecosystem.
Netflix is also embracing artificial intelligence to boost efficiency and enhance storytelling. The Argentine sci-fi series “The Eternaut” is the first Netflix project to use generative AI in final production footage. A complex visual effects sequence involving a collapsing building was completed 10 times faster and far more affordably than with traditional VFX methods.
Ted Sarandos, Netflix’s co-CEO, said on the earnings call:
“The cost of that sequence would have been unfeasible using traditional methods. AI allowed us to bring it to life.”
From generating ad content to personalized recommendations, AI is becoming a core part of Netflix’s operational strategy.
“An Incredible Entertainment Value”
In a world of rising streaming costs, Netflix is positioning itself as both premium and affordable. At $8 a month for the ad tier, Netflix is cheaper than most competitors, including Disney+, HBO Max, and Peacock’s new $11 plan. Amazon Prime Video’s ad-supported tier remains one of the most expensive at $15 per month.
Netflix co-CEO Greg Peters summarized the company’s appeal, saying:
“We are an incredible entertainment value—not only compared to traditional entertainment, but compared to other streaming competitors.”