Spencer Neumann

Paramount might have outlasted and outbid Netflix in the competition to acquire Warner Bros. Discovery, but Netflix is not overly fussed about the loss.

Netflix, which reported its Q2 earnings on Thursday, generated more than $11 billion in overall revenue last quarter, up 15.9% year-over-year.

Netflix’s ad business is scaling its audience and inventory faster than its ability to monetize it, according to a recent earnings call.

Netflix grew its overall revenue by 17% year over year – a huge jump from Q2 last year, when that number was just 3%. Now that the platform’s ads plan is hitting a certain level of scale, ad revenue is becoming a source of profit.

Netflix grew its overall revenue by 15% year over year, largely driven by account growth, thanks to anti-password sharing tactics. It also unveiled new ad measurement options for advertisers.

Netflix ended its first fiscal year with an ads business with a jump in year-over-year subscriber growth and, as a result, revenue.

Subscriber retention is trending on Netflix right now. Ads have become a key aspect of Netflix’s strategy to retain users by offering a lower-cost option – and, so far, the approach seems to be working.

Netflix gained roughly 6 million subscribers this quarter, mostly thanks to anti-password sharing. But advertising remains only a tiny piece of the business.

Weeks ahead of its first-ever upfront, Netflix is making programmatic strides with a private marketplace and enforcing anti-password sharing.

Although Netflix lost roughly 1 million users in Q2, the streaming giant gained 2.4 million subs in Q3, which helped boost the company’s revenue by 6% year over year. The question is: What happens to Netflix’s subscriber count when it flips the switch on ads in less than two weeks?