Netflix executives are positioning 2025 as the year when the streamer’s advertising ambitions enter the “walk” phase of a crawl, walk, run roadmap that’s served as shorthand for its progress since an ad-supported tier was first implemented three years ago. Realizing that goal hinges on the company getting its new in-house ad tech right.

In Q4, Netflix’s ad-supported plan represented over half of new subscriber sign-ups in the territories where the company runs ads, a sign that the offering is appealing to budget-conscious consumers. Netflix is instituting its first price hike for the cheaper streaming option, which will go from $6.99 to $7.99 per month in the U.S., along with similar increases for its more expensive ad-free plans.

Users have flocked to the platform with the addition of more live sports content, including the blockbuster Mike Tyson vs. Jake Paul boxing match and two Christmas Day NFL games. Such prime-time programming is potentially serving as a draw for deep-pocketed brands that see traditional TV as on the decline.

As Netflix tries to level up its sophistication to capitalize on a $25 billion market for connected TV advertising, it is wresting control over its own ad tech after previously relying on partners like Microsoft. Netflix has already launched its in-house tech stack in Canada and aims to roll it out to the U.S. in April.

For years, Netflix was one of the streaming platforms that didn’t have ads. However, as they’ve expanded more into live sports, their model has changed. As they continue to expand and venture into new areas, we can expect to see more advertising opportunities at both a local and national level.

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