Netflix’s Next Growth Phase: Advertising, International Expansion, and Content Franchises

Netflix has evolved from its DVD-by-mail roots to dominate the streaming landscape with over 300 million subscribers. Its recent strategies—cracking down on password sharing, launching ad-supported tiers, and refining content—have reignited growth. Now, investors eye three key drivers for future expansion.

Advertising revenue is accelerating rapidly. Nearly 30% of Netflix's subscriber base—94 million users—opted for the ad-supported plan by Q2 2025. Ad revenue doubled in 2024 and is projected to double again this year. The high-margin segment leverages Netflix's global reach and targeted capabilities, with the company developing in-house tools like the Netflix Ads Suite to reduce third-party reliance.

International markets remain a frontier. While penetration is high in North America and Europe, regions like Asia-Pacific and Latin America offer untapped potential. Localized content and pricing flexibility could unlock millions of new subscribers.

Franchise-building is the third pillar. Netflix aims to replicate the success of titles like "Stranger Things" and "The Crown" by investing in scalable intellectual property. Spin-offs, merchandise, and gaming adaptations may further monetize its content library.