Netflix posts $10.5 billion in revenue after price hikes, eyes more growth through ads and AI

Netflix’s latest earnings report signals strong momentum for the streaming giant, with first-quarter revenue reaching $10.5 billion, a 13% year-on-year jump, after recent price increases across key markets. Net income also rose sharply to $2.9 billion, underlining the platform’s continued financial strength.

“We expect continued growth in membership and advertising revenue, along with the full-quarter benefit from recent price changes,” the company said in a shareholder letter on Thursday.

In January, Netflix raised the price of its premium plan to $24.99 per month in the US, UK, and Argentina, while also increasing its Extra Member option, its approach to curbing password sharing, to $8.99. That pricing structure is now expanding to France.

Interestingly, this marks the first quarter where Netflix didn’t report subscriber growth figures. The company, which had 300 million global subscribers as of January, previously announced it would only share major subscriber milestones going forward. This shift reflects Netflix’s growing emphasis on alternative revenue streams like advertising.

Speaking during the earnings call, co-CEO Greg Peters said Netflix expects to “roughly double” its advertising revenue in 2025. Earlier this month, the company launched its own advertising technology platform to power this ambition.

Peters also teased changes to the Netflix interface and hinted at a new AI-powered feature in development. “Later this year,” he said, the company will roll out a redesigned TV homepage and is “exploring an interactive search experience using generative technologies,” echoing earlier reports of Netflix integrating AI-driven tools.

Netflix’s evolving content strategy continues to set it apart. Beyond scripted hits and bingeable originals, the platform is increasingly leaning into live programming. Its live event slate now includes comedian John Mulaney’s late-night show and a high-profile boxing rematch between Amanda Serrano and Katie Taylor scheduled for July.