Ads in paid services? Netflix has proven that it pays off

Netflix’s decision to introduce advertising to its paid service a few years ago caused a wave of opposition among users. However, the platform consistently implemented its strategy and today it is clear that it was an extremely profitable move. The latest financial reports show that last year alone, the advertising plan brought the company over $1.5 billion in revenue, which means an increase of 150%. year to year. Forecasts indicate that this result may double over the next 12 months.

Package with ads

Netflix remains the clear leader in the paid streaming services market. The number of subscribers has already exceeded 325 million, and the advertising package itself – although it is not yet available in Poland – has nearly 100 million users globally. Data from mid-2025 said there were 94 million accounts, and it is currently estimated that the barrier of 100 million has already been exceeded. This shows how quickly consumers accepted the new model.

Packages vary significantly in price. The basic version with ads costs $7.99, while the ad-free plan costs $17.99. monthly. On an annual basis, this means a difference of approximately USD 120, or nearly PLN 450. For many users, saving money turned out to be more important than the comfort of watching without advertising breaks. As a result, more and more people decide to pay less and accept the presence of advertising.

For years, there was a belief that ads were the price for free access, and a subscription guaranteed their absence. Netflix, followed by other players, broke this pattern. Although each subsequent change – restrictions on sharing accounts, differences in image quality or advertising – was controversial, in practice it led to an increase in revenues. The market quickly began to copy these solutions.

Importantly, this trend goes beyond streaming. Advertising is also increasingly appearing in one-time paid services or paid digital tools. The announcements indicate that the ads will also go to ChatGPT, where they will be visible to both free users and those using the cheapest subscription. This is a clear signal that the line between free and paid services is becoming increasingly blurred.

The model change also affects hardware and software. Ads appear in operating systems, smartphones, TVs and consoles, even though these are products that users have already paid for. Even ad blocking solutions are losing effectiveness, which further strengthens the position of the largest technology companies.

Netflix success

Netflix’s success has normalized a situation in which paying users are increasingly treated similarly to those using free versions of services. Initially, the ads were supposed to concern only the cheapest packages, then subsequent subscription levels, and today it is increasingly clear that this system can cover almost everyone.

The direction of changes is clear. Advertising in paid services is no longer the exception, but is becoming the standard. Users, even if they initially protest, eventually accept the new conditions – mainly because there are fewer and fewer alternatives. Netflix has proven that this model works, and the rest of the market is following suit.