Netflix ad revenue forecast doubles as ad-supported tier hits 250 million viewers
Bank of America projects advertising income to reach $3 billion in 2026, up from $1.5 billion in 2025, as the platform introduces new ad formats and extends its sports partnership through 2029.
Netflix’s advertising business is accelerating at a pace that has prompted Bank of America to forecast a significant expansion in revenue, with the streaming platform’s ad-supported tier now surpassing 250 million monthly global viewers. This figure represents a substantial increase from the 94 million viewers recorded a year ago, driven by the company’s strategic expansion into live sports and new international markets.
According to the bank, the company generated approximately $1.5 billion in advertising revenue in calendar year 2025. Analysts at Bank of America project that this figure will roughly double to around $3 billion in 2026. The growth is underpinned by a shift in how the company monetises its audience, moving beyond traditional linear placements into new formats such as mobile vertical video feeds and podcast offerings, while simultaneously testing personalised advertising based on viewing behaviour.
The economics of the ad-supported tier have also evolved since its launch in 2022. Originally priced at $6.99 per month, the plan is now listed at $8.99, contributing to broader pricing adjustments across the platform. To further widen its reach, Netflix plans to enter 15 additional countries, a move that captures roughly 10 per cent of global advertising spend. The company intends to manage viewer experience by reducing overall ad loads while increasing revenue through more targeted, addressable advertising and expanded sponsorship arrangements.
On the content front, the platform has secured rights to three additional National Football League games for the upcoming season, extending its partnership with the league through 2029. The expanded slate includes the NFL’s first-ever Thanksgiving Eve game, an international opener in Australia, and a late-season matchup, joining two Christmas Day games already held by Netflix. These games will be available in more than 200 countries, although financial terms for the rights were not disclosed.
Bank of America characterises the NFL expansion as consistent with Netflix’s broader content strategy of anchoring a few high-profile live events per quarter, rather than pursuing full regular-season broadcast packages. This approach complements the firm’s forecast that Netflix will spend approximately $20 billion on content in calendar year 2026, balancing heavy investment in programming with a rapidly growing advertising revenue stream.
