Netflix is set to spend around $18 billion in cash on content in 2025, showing its commitment to growth in the entertainment industry.
Spencer Neumann, CFO, Netflix, said, “We’re not anywhere near a ceiling with respect to content spending,” at the 2025 Morgan Stanley Tech, Media & Telecom Conference. “I think we are still just getting started.” This estimated budget is about 11% higher than the $16.2 billion spent in 2024.
Additionally, Neumann explained that Netflix forecasts content spending based on a mix of “art and science.” The process starts with estimating revenue, which the company has “pretty good predictability about,” he said. Then, Netflix evaluates content spending while keeping margin targets in check. The streaming giant ended 2024 with 301.6 million paid subscribers worldwide, with over 700 million people watching Netflix content. However, Neumann pointed out that Netflix is still relatively small in the entertainment business. Currently, it is in about 40% of connected TV households globally and captures just 6% of its addressable market. In the U.S. and other countries, Netflix still accounts for less than 10% of total TV viewing.
Spencer Neumann, CFO, Netflix, said, “We see the opportunityIt’s more about, where is the biggest opportunity to grow and spend… We want to stay in growth mode versus maintenance mode as long as possible.”
Furthermore, Neumann emphasized Netflix’s goal of delivering “more and more entertainment value per dollar” while continuously enhancing the user experience. “Because the competition is improving as well.”
Netflix’s content lineup remains diverse, spanning multiple genres and formats produced in over 50 countries. In 2025, three of its biggest-ever scripted English-language series are set to return: “Squid Game,” “Wednesday,” and “Stranger Things.” Additionally, Neumann highlighted that Netflix is increasing its licensed content spending and sees live events as a promising growth area.
Spencer Neumann, CFO, Netflix, said, “Chief content officer Bela Bajaria has created a global studio operation.” And, “The most important thing for productions outside the U.S. is that they have to start with big, local impact with authentic storytelling. Then, if those stories are great, they can occasionally travel,” he added, citing the massive success of the Korean drama “Squid Game.”
Additionally, while YouTube has gained a larger share of TV viewing, Neumann said that the two platforms compete for consumer attention but do not operate in a “zero-sum game.” Netflix is focused on capturing entertainment time that neither platform currently dominates traditional TV.
Spencer Neumann, CFO, Netflix, said, “We share in the creative and economic risk with our creators,” and “We think we’re the home for the best creators and storytellers on the planet.”
Furthermore, Neumann addressed Netflix’s approach to live sports. While the company enjoys hosting “big, eventized moments” like the NFL games on Christmas Day and WWE wrestling, he clarified that acquiring an NFL Sunday afternoon package is “not on our near horizon.” “We loved the NFL on Christmas Day, Beyoncé Bowl, it worked,” Spencer Neumann, CFO, Netflix, said. “Never say never on these things.”
Netflix continues its upward trajectory, reporting 18.9 million new subscribers in Q4 2024 nearly doubling analysts’ predictions. For the full year, the company added over 41 million subscribers, a significant jump from the 29.5 million in 2023.
Additionally, Netflix raised its revenue outlook for 2025, projecting between $43.5 billion and $44.5 billion, an increase of $500 million from previous estimates. This would mark an 11.5%-14% rise compared to last year. The company also aims for a 29% operating margin, up one percentage point from its previous target.
Furthermore, in January 2025, Netflix announced price hikes across multiple markets, reinforcing its pricing power. The U.S. Standard ad-free plan increased by $2.50 to $17.99 per month, marking its first price rise in three years. The ad-supported tier saw its first-ever price hike, now costing $7.99 per month, up from $6.99.
Netflix users worldwide streamed over 94 billion hours of content in the second half of 2024, reflecting a 5% year-over-year increase. “Squid Game” Season 2 was the platform’s most-watched series during this period, racking up nearly 87 million views. However, no single title accounted for more than 1% of Netflix’s total viewing time “Squid Game 2” represented only 0.7% of viewing hours in the latter half of the year.