Netflix You expect to spend in a neighborhood of $ 18 billion in cash on content in 2025 – and he sees a lot of runway to expand in the coming years, according to Netflix CFO Spencer Newman.
“We are not anywhere near the ceiling” regarding content spending. “I think we are still just starting.” The $ 18 billion that has been linked to this year will be about 11 % of the 2024 cash content of $ 16.2 billion.
In response to a question about how Netflix predicts the content spending, Newman said, “It is a little art and science.” He said it begins with the expected revenues, which the company has “providing a good ability to predict it”, then considers the content spending in the context of achieving the goals of the margin.
Neymann said that Netflix ended 2024 with 301.6 million paid members worldwide, which faster growth in 2023. This translates into more than 700 million people watching Netflix content. However, “we are still young in every major scale” in the context of entertainment. The financial manager said that Netflix is about 40 % of TV families connected all over the world and got 6 % of their treated market. In the United States and other countries, Netflix is still part of a total TV viewing less than 10 %.
“We see the opportunity to grow everywhere,” Numan said. “It is more about, as it is the biggest chance of growth and spending … We want to stay in a growth mode for maintenance for as long as possible.”
He said the goal of Netflix is to provide “more and more entertainment value per dollar.” Neuman said he also focuses on continuing to improve the total experience “because competition is also improving.”
Netflix programs to a wide and diversified global audience, with a list that includes TV programs and movies through multiple types and formats, produced in more than 50 countries. He pointed out that in the year 2025, Netflix includes three of the largest series of English-mature text of the “mature” category of content-“Al Houka Game”, “Wednesday” and “Stranger Things”. Neuman said that the summlix licensed content is also growing and that the living events are the growth category “We have just started building.”
Neuman said that the chief content staff Bella Bagaria established a global studio. The most important thing for production outside the United States is that “you should start with a great and local influence” with “telling authentic stories”. Then, “If these stories are great, they can sometimes travel” outside these markets, as the Korean drama did “Squid Game”.
YouTube has a greater share of Netflix to view TV. But Newman said, while competing for the consumer’s attention, it is “not a zero game.” He said that Netflix focuses heavily on taking a share of the time of entertainment that “does not pick up any of us” – that is, traditional TV. In addition, Netflix differs from YouTube because “we participate in creative and economic risks with our creators … We believe that we are at home for the best creators and stories narrators on this planet.”
As for the great Netflix appetite for live sports, Newman said that the company wants to remain in “these big and updated moments”, such as the NFL and WWE gaming pair, which started earlier this year. He said: “We loved the American Football Association on Christmas Day, Beyonce Powell, I have succeeded.” Whether Netflix is interested, for example, he took a package of the American Football Association on Sunday afternoon, Newman replied, “Never less than these things,” but “it is not on our near horizon.”
For the fourth quarter of 2024, Netflix reported 18.9 million new global subscribersOn the expectations of double analysts. For the whole year, Netflix added more than 41 million subscribers, increased significantly from 29.5 million in 2023.
Netflix also raised its expectations for 2025 for revenues ranging between 43.5 billion dollars and 44.5 billion dollars (an increase of $ 500 million from the previous guidance) and the operating margins by 29 %, increasing a percentage of previous expectations.
Meanwhile, in January 2025, Netflix announced High prices in the United States and other markets In all plans – flexible by the sign sign that shows the strength of pricing. The record -free standard plan in the United States has increased by $ 2.50, and it moves from $ 15.49 to $ 17.99 per month, which is the first time in three years since Netflix raised the price of that layer. Netflix has implemented the first increase in the advertising -backed category, which is now $ 7.99 per month in the United States, an increase of $ 1 from $ 6.99.
Netflix customers all over the world More than 94 billion hours of content was broadcast in the second half of 2024, an increase of 5 % on yearAccording to the company. The second season of the “Squid game” was the most shown during that time period with approximately 87 million views. But there was no single title representing more than 1 % of the total viewing on Netflix: for example, “Squid Game 2” represents only 0.7 % of the time spent in the back half of the year.
