Netflix Q1 revenue jumps 12.5% as over half of new users choose ad-supported plan

Netflix has kicked off 2025 on a strong note, reporting a 12.5% rise in first-quarter revenue to $10.54 billion, driven in large part by the growing popularity of its ad-supported subscription model. Net profit for the quarter stood at $2.9 billion, with earnings per share reaching $ 6.61, surpassing analyst expectations.

The company’s lower-priced, ad-supported tier, introduced in late 2022, is now proving to be a significant growth driver. More than half of new subscribers in markets where the plan is available are opting for this budget-friendly alternative, which is priced at $7.99 per month, compared to the $24.99 premium plan.