Netflix Expands Advertising Formats Ahead of 2026

Netflix, the leading video streaming service, is set to introduce a range of new advertising formats by 2026. Customers opting for the lower-cost subscription plan that includes ads will experience more frequent interruptions during their viewing sessions. Notably, advertisements will also be shown when users pause playback, as announced by the company.

The streaming giant is looking to enhance its advertising strategies by incorporating generative artificial intelligence, which aims to create a more integrated advertising experience linked to its content offerings. This initiative reflects Netflix's ongoing efforts to innovate and adapt within a competitive market.

As of now, Netflix boasts over 94 million subscribers on its ad-supported plan, a significant increase from approximately 70 million in November of the previous year. Although the company has ceased providing regular updates on overall subscriber growth, it reported having over 300 million households subscribed to its services by the end of 2024. Industry analysts estimate that more than 700 million individuals globally utilize Netflix's platform.

This growth in ad-based subscriptions is making Netflix increasingly appealing to advertisers, who have traditionally relied on conventional television channels for their campaigns. Currently, the ad-supported service is available in twelve countries, including Germany.

To facilitate this expansion, Netflix has developed its own advertising platform in collaboration with partners such as Microsoft. A transition to this new advertising system is expected to occur in Europe in the coming week. This platform allows advertisers to customize their ads based on over 100 interest categories, including various life stages, thereby enhancing the relevance of the advertisements displayed.

As the demand for affordable streaming options continues to grow, Netflix's advertising model is poised to play a crucial role in its strategy for remaining competitive in the dynamic landscape of digital media.