Three years ago, Netflix launched its ad-supported tier. Speaking at The Future of Media event, Damien Bernet, who leads the advertising business at Netflix, joined The Media Leader’s Jack Benjamin to reflect on that journey and outline what’s next for the global streaming giant.
“When I started three years ago, we had zero ad members, zero ad revenue and zero staff,” Bernet recalled. “Now we’ve grown to over 12 million monthly users in the UK alone, with 55% of new joiners choosing the ad plan.”
This growth means Netflix is now the UK’s number one streaming service, accounting for around 23% of total video time. Yet, as Bernet pointed out, some things haven’t changed: “We still release more video content than anyone on the planet. From Adolescence winning an Emmy to Squid Game continuing to travel globally, Netflix remains a cultural powerhouse.”
Scaling and success
The early focus for Netflix’s advertising business, Bernet said, was on scale. “Advertisers told us they needed growth and scale. That’s what we delivered first.”
Netflix’s ad-supported model has since evolved into what Bernet describes as a “crawl, walk, run” strategy. “We’re definitely in the walking phase now,” he said. “We’ve built a strong tech foundation, and revenues are growing fast, five times higher than last year.”
That progress has been achieved by listening closely to advertisers and agencies. “They trusted Netflix as a brand from day one,” he said, “but they needed to see that we could deliver impact. That’s why we’ve worked hard on measurement, engagement, and attention.”
Across Europe’s five major markets, Netflix users spend an average of 39 hours a month watching ad-supported content. “Our attention levels match television,” Bernet added, “which shows that people are genuinely engaged with what they’re watching.”
Reaching new audiences
A key reason advertisers are excited about Netflix is its ability to reach viewers who are increasingly hard to find elsewhere. “Before we launched the ad tier, many advertisers told us, ‘We’re losing viewers who’ve moved from TV to streaming,’” Bernet explained. “Now, they can reach those audiences again.”
He pointed to a campaign in Germany for the brand Vera, which wanted to connect with urban, younger audiences no longer watching linear TV. “The results were incredible, 68% incremental reach at 2.4 times less cost than traditional channels,” Bernet said. “That shows the power of Netflix as a complementary, not a replacement, platform for TV.”
A new adtech future
Another major milestone in Netflix’s evolution has been the development of its in-house adtech stack, launched across EMEA earlier this year. For Bernet, this marks a turning point.
“From the start, agencies had very high expectations of Netflix’s technology,” he said. “We’ve now built something that delivers speed, automation, improved performance, and better measurement.”
The company has also expanded its programmatic partnerships, moving beyond its initial exclusive arrangement with Microsoft. Netflix inventory is now available via Amazon’s and Yahoo’s DSPs, a move that might surprise some, given Amazon’s status as a streaming rival.
“In adtech, you often work with both friends and competitors,” Bernet said. “At the end of the day, it’s a win-win. Advertisers want easy access, and we want to make it simple for them to buy. This drives more clients, more diversity, and more variety on Netflix.”
Beyond the tentpoles
Netflix’s huge slate of original programming remains a core strength, but Bernet explained that advertisers are now looking to associate with a broader range of content, not just the big global hits like Wednesday or Stranger Things.
He cited the success of Adolescence and Apeirophobia as examples of how even smaller shows can generate massive interest. “Brands want to tap into fandom,” he said. “We’ve recently announced global partnerships with Mattel and Hasbro, both engaging with the excitement around our top titles.”
Netflix also works with brands to find the right cultural fit. “Sometimes, as a viewer, it can be hard to find the perfect match,” Bernet explained. “We help brands navigate our upcoming content to find what will resonate best—like Love Is Blind season three’s partnership with a cosmetics brand.”
Experimenting beyond streaming
While entertainment remains Netflix’s foundation, the company is steadily expanding into live events and gaming. “We’re moving into live with patience,” Bernet said. “But we’re already seeing success. This Christmas, we’ll have two NFL games available to stream in Germany, and advertisers are incredibly excited.”
For advertisers, live programming offers a unique advantage. “With live, you can reach the entirety of the Netflix membership, not just ad-tier users,” Bernet said. “It opens up huge opportunities for global brands.”
The next phase: running with innovation
As Netflix transitions from “walking” to “running,” Bernet said the focus will shift toward innovation in targeting, measurement, and creative formats. “We now have control of our destiny,” he said. “We know what’s coming in the next four months, and even the next 24 months.”
One of the latest developments, he revealed, involves generative AI. “We’re launching a GenAI tool that connects brand assets with our show assets to create bespoke ads automatically,” Bernet said. “It’s scalable, it’s creative, and it can even generate multiple versions of the same ad, tailored to different audiences.”
This technology launches first in the US before arriving in the UK next year.
“We’re just at the beginning of the next chapter,” Bernet concluded. “From content to technology to creativity, Netflix is powering the next era of media and entertainment.”
