Streamers are slowly but surely moving toward the traditional broadcasting model, and Netflix, as usual, is the catalyst — although only because Wall Street is demanding it. Investors are no longer focusing on subscriber numbers. Instead, as streaming platforms increasingly rely on advertising to drive financial growth, they’re paying closer attention to how many viewers tune in.
Reportedly, the average Netflix subscriber watches 9 percent less than they did three years ago. The decline began shortly after Netflix introduced its ad-supported tier in 2022, hoping to offer lower subscription fees and stem subscriber losses.
According to Wells Fargo, advertising will account for more than a third of Netflix’s revenue growth next year, even though the company has lowered its 2026 ad-revenue forecast to $2.7 billion, down from its original estimate of $3 billion.
BMO Capital Markets reports that Netflix runs 2.4 minutes of commercials per hour, compared with eight minutes per hour on Hulu and Disney+.
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