Netflix eyes ad growth, content spend after failed Warner Bros bid

Acquiring Warner Bros. would have given Netflix access to major franchises such as Game of Thrones and Friends, without the need to invest heavily in building its own content portfolio, News.Az reports, citing Reuters.

Instead, the company now faces increased competition from a potential combined entity involving Warner Bros. Discovery and Paramount Skydance, should the proposed $110 billion deal move forward.

Analysts polled by LSEG expect Netflix to report a 15.5% rise in first-quarter revenue to $12.18 billion, including approximately $634 million from advertising.

The company raised subscription prices in the United States in March, a move that some analysts believe could lead to an upward revision of its full-year revenue outlook. The price increase may also encourage more users to switch to its ad-supported tier, which remains a relatively small but growing revenue segment.

Netflix shares have risen 13% so far this year and are up about 26% since the company abandoned its $72 billion bid for Warner Bros.

Investors are also anticipating a stronger focus on sports and live events as Netflix seeks to expand its advertising revenue streams. John Belton, portfolio manager at Gabelli Funds, said the company is entering “another phase” in its advertising business, potentially becoming one of the largest global ad platforms.

During the quarter, Netflix expanded its live programming lineup, including a concert by K-pop group BTS streamed from Seoul that attracted 18.4 million viewers worldwide. It also streamed the 2026 World Baseball Classic, which became the most-watched baseball game globally.