Netflix: Upfront Takes

Research evidence excerpt

Netflix: Upfront Takes

Deutsche Bank

Research

Rating Company Date

Hold Netflix 14 May 2026

North America Reuters Bloomberg Rating Hold

United States NFLX.OQ NFLX US Price target (USD) 100.00 Price at 13 May 26 87.56

52-week range 1,339.13 –

TMT 75.86

Media & Entertainment

Valuation & Risks

Upfront Takes

Bryan Kraft

After attending Netflix’s 2026 Upfront presentation and subsequent sell-side Research Analyst

+1-212-250-0117 Q&A event, it is clear Netflix’s advertising business remains on a solid growth

trajectory. The company is successfully executing on a multi-year strategy to Spencer Amer

build a significant, high-margin advertising revenue stream layered on top of its Research Associate

core subscription engine. Below are our key takeaways from the events: +1-212-250-4386

Key Takeaways Shiv-A Singh

Netflix’s ad-supported viewer base is growing rapidly with plenty of monetization Research Associate

+1-212-250-0118 headroom. Management announced the ad-supported tier has reached 250M

monthly active viewers globally, up from the 190M announced in November. The Benjamin Soff

lower entry price point is proving to be a highly effective customer acquisition Research Analyst

tool, with management noting that over 60% of all new subscribers are choosing +1-212-250-3716

an ad-supported plan in markets where it is available. While the ads tier remains

dilutive to the company’s global ARM in the near term, this represents an

additional growth lever that the company can exercise over time via pricing and

more efficient advertising monetization.

Netflix announced it will launch an ad-supported tier in 15 additional countries in

2027 (including Sweden, Colombia, Thailand), bringing the company’s coverage

of the worldwide brand advertising market to 90%, from 80%. Netflix has been