Netflix Content Expenditure 2025 Levels ‘Not Nerwhere near Almost Ceiling’: CFO

Netflix expects to publish in the vicinity of $ 18 billion in cash in 2025 – and it sees a lot of runway to expand in the coming years, according to Netflix CFO Spencer Neumann.

“We are nowhere close to a ceiling” with regard to contents of contents, said Neumann, who spoke on Wednesday at the Morgan Stanley Tech, Media & Telecom Conference from 2025. “I think we have just started.” The $ 18 billion coupled for this year would have risen by around 11% compared to the 2024 cash editions of $ 16.2 billion.

Asked how Netflix predicts the editions for content, Neumann said, “It’s a bit of art and science.” It starts with expected income, which the company “has pretty good predictability,” he said, and then it looks at the expenditure of content in the context of achieving margin goals.

Netflix finished 2024 with 301.6 million paid members worldwide, as a result of which growth accelerates growth from 2023. That translates into more than 700 million people looking at Netflix content, Neumann said. “However, we are still small in every important measure” in the context of the entertainment company. Netflix is ​​in about 40% of the connected TV households around the world and has conquered 6% of its addressable market, said the CFO. And in the US and other countries, Netflix is ​​still less than 10%as part of the total TV view.

“We see the chance to grow everywhere,” said Neumann. “It is more about, where is the greatest chance of growing and spending … We want to stay in the growth mode versus maintenance mode for as long as possible.”

The goal of Netflix is ​​to “deliver more and more entertainment value per dollar,” he said. It is also aimed at continuing to improve the overall experience “because the competition also improves,” said Neumann.

Netflix programs to a wide and diverse worldwide audience, with a slate with TV shows and films in multiple genres and formats, produced in more than 50 countries. He noted that in 2025 Netflix has three of the largest script-script-langual series ever the “most mature” category of content-backing: “Squid Game”, “Wednesday” and “Stranger Things”. Neumann said that Netflix’s licensed contents of contents are also growing and that live events are a growth category that “we are just starting to expand.”

Chief Content Officer Bela Bajaria has created a global studio operation, Neumann said. The most important thing for productions outside the US is that they ‘have to start with large, local impact’ with ‘authentic stories’. Then, “If those stories are great, they can occasionally travel” outside those markets, as the Korean drama “Squid Game” did.

YouTube has taken a larger share than Netflix of watching on TVs. But Neumann said, although they compete for the attention of the consumer, it is “not a zero-butest game”. He said that Netflix is ​​most focused on taking the share in entertainment time that “none of us records” – that is, traditional TV. Moreover, Netflix differs from YouTube because “we share with our makers in the creative and economic risk … We think we are home to the best makers and storytellers on the planet.”

As for how big Netflix’s appetite is for live sports, Neumann said that the company wants to stay in “those big, event moments”, such as the pair of NFL games on Christmas Day and the WWE, which started earlier this year. “We loved the NFL on Christmas Day, Beyonce Bowl, it worked,” he said. Whether Netflix would be interested in, for example, taking an NFL Sunday afternoon -Package, Neumann replied: “Never say never about these things” but that “it is not on our nearby horizon.”

For the fourth quarter of 2024, Netflix reported 18.9 million net new global subscribers, approximately double analyst expectations. For the entire year, Netflix has added more than 41 million subscribers, considerably an increase of 29.5 million in 2023.

Netflix also increased its 2025 prospects for turnover between $ 43.5 billion and $ 44.5 billion ($ 500 million of earlier guidelines) and for the operational margin to 29%, one percentage point of the previous prediction.

In the meantime, in January 2025, Netflix announced price increases in the US and other markets in all plans – a flex from the subscription streamer who demonstrates the price force. The standard advertising -free plan in the US rose by $ 2.50, from $ 15.49 to $ 17.99 per month, the first time in three years since Netflix increased the price of that layer. Netflix implemented the first increase for the advertising low, which is now $ 7.99 per month in the US, an increase of $ 1 from $ 6.99.

Netflix customers worldwide flowed more than 94 billion hours in content in the second half of 2024, according to the company 5% year after year. Season 2 “Squid Game” was the most viewed series of Netflix during that period with nearly 87 million views. But no title was good for more than 1% of the total display on Netflix: for example “Squid Game 2” represented only 0.7% of the time spent viewing in the back of the year.