Netflix is aiming to invest approximately $18 billion in cash on content in 2025, representing an 11% increase from the $16.2 billion spent in 2024. According to CFO Spencer Neumann, the company believes it has significant room to expand its content budget in the coming years. Neumann emphasized that Netflix is still in its early stages of growth as a global entertainment company, indicating that it has not yet reached a ceiling in terms of content spending.
Netflix ended 2024 with 301.6 million paid subscribers globally, up from the previous year, translating to over 700 million viewers. Despite this growth, Neumann pointed out that Netflix is still a relatively small player in the broader entertainment industry. The platform is present in about 40% of connected TV households worldwide and has captured only 6% of its addressable market. In the U.S. and other countries, Netflix accounts for less than 10% of total TV viewing, highlighting the potential for further expansion.
Neumann explained that Netflix’s content spending strategy combines both art and science, starting with revenue forecasts and then aligning content investments with margin targets. He emphasized the opportunity for growth across all markets, with a focus on prioritizing the biggest growth opportunities. Netflix’s goal is to deliver increasing entertainment value per dollar while continuously improving the overall user experience to stay competitive.
In 2025, Netflix is set to release three of its most anticipated scripted English-language series: “Squid Game,” “Wednesday,” and “Stranger Things.” The company is also investing in licensed content and exploring live events as a growth area. Neumann highlighted the importance of producing authentic, locally impactful content that can resonate globally, as seen with the success of “Squid Game.”
While YouTube has been gaining a larger share of TV viewing, Neumann views the competition as non-zero-sum, focusing on capturing traditional TV viewing time rather than directly competing with YouTube. He emphasized Netflix’s unique position as a partner to creators, sharing both creative and economic risks, which attracts top talent.
Netflix also reported strong subscriber growth in 2024, adding 41 million new subscribers, and raised its 2025 revenue outlook to $43.5 billion to $44.5 billion. The company demonstrated its pricing power with recent price hikes, including increases in its ad-free and ad-supported plans. Despite these increases, Netflix’s content continues to drive engagement, with over 94 billion hours streamed in the second half of 2024, led by the success of “Squid Game” Season 2.
Overall, Netflix is positioning itself for sustained growth, leveraging its global reach, diverse content slate, and strategic pricing to maintain its position as a leader in the streaming industry.
