"We're not anywhere near a ceiling with respect to content spending", says, Spencer Neumann, Netflix's CFO." For 2025 content spend will reach $18 billion from 2024's $16.2 billion, a jump of 11.1%,
"We have pretty good predictability about our anticipated revenue stream", quips Neumann. Netflix ended 2024 with over 302 million paid subscribers globally, which translates to over 700 million viewers. This is still small in relation to market size. For example, in the U.S. Netflix represents less than 10% of total TV viewing.
"Our objective is to deliver more and more entertainment value per dollar and improve the overall experience" says Neumann.
Netflix serves up a mix of TV shows and movies across multiple genres and formats produced in over 50 countries - live events have become a major growth area. Netflix views YouTube as a competitor but not as you might think. Neumann says, "We share in the creative and economic risk with our creators.... but think we're the home for the best creators and storytellers on the planet."
For 2025 revenues are expected to exceed $44 billion. It announced price increases in January. The standard, ad-free plan is the U.S. rose by $2,50 to $17.79/month. Ad-supported subscriptions were raised to $7.99/month from $6.99.
'Squid Games' Season 2 was Netflix's most viewed series with 87 million viewers but it represented only 1% of total viewings.
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Netflix has pricing power. It can raise subscriptions prices easily and with over 300 million paid subscribers a $2 raise equated to $7.8 billion in higher revenues
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