Netflix is bouncing back from its lost Warner Bros. Discovery bid with new updates and a projected ad revenue of $3 billion in 2026, doubling its previous standing.
Representing a significant portion of its overall projected revenue of $50.7-$51.7 billion, Netflix’s Q1 report credited membership growth, price increases, and a rise in ad revenue for its 16% year-on-year growth in Q1.
The report, shared with shareholders, also hinted at new ad products coming this year. The updates signal Netflix’s intention to continue expanding and investing in its advertising offerings.
Mobile app update
One such update that has already been revealed is Netflix’s move to incorporate a vertical video feed in its mobile app as early as this month.
The update is being introduced to keep up with the “blurring” between entertainment on TV and mobile devices.
Operating like a social feed, the vertical video incorporation will feature short clips from films, TV series, and podcasts intended to help users choose what to watch, what to save for later, and what to share with others.
Testing for the feed has already been carried out and the company is reportedly moving to launch the feature more widely.
Netflix isn’t the first streaming platform to make such a move. Disney+ announced last month that it would be introducing "Verts" to US mobile users, displaying short clips and allowing users to swipe through scenes and jump into playback.
Though neither platform has stated whether ads will be included in the vertical video feed, it could be a development that could come with time, depending on the success of the feature.
Co-founder steps down
Netflix also recently announced that its co-founder Reed Hastings will be leaving the company.
Hastings is stepping down as chairman, thirty years after he helped build Netflix from the ground.
Netflix said Hastings was stepping down to focus on other pursuits. No replacement has been announced.
