Netflix is increasing its content budget to $18 billion USD for 2025, according to CFO Spencer Neumann who spoke at the Morgan Stanley Tech, Media & Telecom Conference. This represents an 11% increase from the $16.2 billion spent in 2024.
"We're not anywhere near a ceiling", Neumann told conference attendees. "I think we are still just getting started". He expressed confidence in the return on this investment, noting that Netflix has "pretty good predictability" about the revenue that will result from this spending.
The streaming service reported 301.6 million paid subscribers globally at the end of 2024, showing accelerated growth compared to 2023. Netflix content currently reaches approximately 700 million viewers worldwide, penetrating about 40% of connected TV households globally. Despite this reach, the company estimates it has captured only 6% of its addressable market, with less than 10% of total TV viewing in the US and several other countries.
"We see the opportunity to grow everywhere. It's more about, where is the biggest opportunity to grow and spend", Neumann explained. "We want to stay in growth mode versus maintenance mode as long as possible".
The company's strategy focuses on delivering "more and more entertainment value per dollar" while enhancing the overall user experience "because the competition is improving as well". Working with chief content officer Bela Bajaria, Netflix emphasizes "authentic storytelling" with "big, local impact", noting that great stories "can occasionally travel" internationally.
For the current fiscal year, Netflix has raised its revenue outlook to between $43.5 billion USD and $44.5 billion USD, an increase of $500 million USD from previous guidance. The company implemented price increases across all plans in the US and several other markets in January 2025.
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Eric Grischott
Born in Groningen in 1991, Eric Grischott is a linguist with a deep-rooted passion for art, music, and fashion. His academic journey led him to graduate in languages, further enriching his linguistic prowess. His thirst for knowledge and cultural immersion took him abroad, where he gained invaluable experience and insights. Eric’s linguistic expertise is not confined to just theory. He has honed his skills in French and German through specialized DELF and DELE courses, demonstrating his commitment to mastering these languages. His passions extend beyond languages, encompassing the creative realms of art, the rhythmic world of music, and the dynamic sphere of fashion.