09:19 AM EDT, 07/12/2024 (MT Newswires) -- Netflix ( NFLX ) could soon begin reaping large benefits in revenue from its advertising tier on subscription packages as the model nears accretion, Wedbush said Friday in a note.

The streaming giant's introduction of subscription plans with varying levels of advertising content is beneficial to limiting churn, analysts at Wedbush wrote.

A Wedbush survey suggests that the business model may begin contributing to the company's income statement in 2025 as a proportion of Netflix's ( NFLX ) subscribers on the ad-supported tier continues to tick higher, according to the analysts.

"Netflix ( NFLX ) is positioning to accelerate ad tier revenue contribution into year-end and 2025 as it improves its advertising solutions and targeting, expands partnerships, and adds more live events," Wedbush said.

Wedbush said it expects that Netflix ( NFLX ) can meet expectations for EPS to more than double between 2023 and 2026. The company is scheduled report Q2 results on Thursday.

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