Spencer Neumann

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?