Netflix published a new shareholder letter that covers the second quarter of the year. Revenue continues to grow and Netflix is optimistic that the trend continues.
The letter covers monetization on the platform, which may also be of interest to Netflix subscribers.
In short:
- Netflix plans to double ad-revenue in 2025.
- Netflix plans to refine its plans and pricing “to improve monetization”.
It does not take a genius to understand how this is going to affect subscribers. Expect another round of price increases, at least in select markets, and more ads on the platform.
While the doubling of ad-revenue will also come from the creation of the company’s ad platform and its development, it is quite probable that Netflix may increase the time ads play per hour for users who are subscribed to the ad-powered plan on the site.
It is interesting to note that Netflix has not seen any negative effects regarding its recent price hikes, introduction of advertisement, increase of ad views, and changes made to the service. Growth continues and most customers seem to stick with Netflix, regardless of what the service does.
Netflix is not the only streaming service that is betting big on ads to fuel growth. Amazon revealed recently that it plans to double ad minutes on Prime Video.
My strategy regarding streaming services remains unchanged. Subscribe selectively for a short period, e.g., a month, or grab a very cheap promotional offer, watch the few shows or movies that are worth watching, and then cancel. For the past decade or so, I have found fewer and fewer reasons for subscribing to Netflix and other streaming services. Main reason? I do not find the shows and movies that they put out appealing or interesting.
What about you? Do you have a subscription to a streaming service? If so, what do you like to watch?
My strategy regarding streaming services remains unchanged–purchase shares in the company.
Had one purchased NFLX in January 2025 and waited until today or last week or even for a few months, the initial purchase price of around $850 would now be worth around $1200. Let me see, that equates to around $300 give or take a few dollars for treats.
A Standard w/ ads subscription for a year is around $120. Someone else can do the math and provide the numerous ways of avoiding ads.
“I do not find the shows and movies they put out appealing or interesting.”
Agree!
If we start seeing ads in our Netflix shows we will cancel our subscripition and pirate the content instead.
‘Subscribe selectively for a short period”.
I would modify it slightly. Get two streaming services that have older amazing shows you love and can indefinitely rewatch and keep them. As your top rewatchable shows migrate to different streaming service, change your two base services accordingly. And remember: you will never have two services that have all you want. Just get the ones that have 50% or more of your top favorites.
And with the rest of streaming services: follow this article instructions. And do not forget free services like Roku, Pluto and few others. They have great movies that 5 years or older. So basically they have most of the greatest movies from time to time. Exception are Lord of the Rings trilogy, Harry Potter series and best of older and better Disney/Pixar/Marvel/Star Wars properties. Except those, I have probably seen every movie on free streaming services.