At the 2025 Morgan Stanley Tech, Media & Telecom Conference, Netflix's Chief Financial Officer, Spencer Neumann, announced that the company plans to spend approximately $18 billion on movies, TV shows, and other productions in 2025. This figure represents an 11% increase from the $16.2 billion spent in 2024, underscoring Netflix's dedication to expanding its content library. Neumann emphasized that this investment does not signify a spending cap, stating, "We're not anywhere near a ceiling. I think we are still just getting started."
This substantial budget is set to support a diverse array of high-profile projects. Notable among them is "The Electric State," a science fiction film directed by the Russo Brothers and starring Millie Bobby Brown and Chris Pratt. The Russo Brothers have established a strong collaborative relationship with Netflix, previously delivering blockbuster hits like "The Gray Man," and now continuing with "The Electric State." Other significant investments include the "Extraction" franchise featuring Chris Hemsworth, Zack Snyder’s "Rebel Moon" and "Army of the Dead," as well as popular series such as "Wednesday" and "Bridgerton." Additionally, Netflix continues to excel in genres like documentaries, K-dramas, and anime, further broadening its appeal to a global audience.
Following a period of reacceleration with nearly 20% revenue growth and 6 percentage points of margin expansion in 2024, the company continues to focus on improving its entertainment value while developing new revenue streams. This reacceleration comes after implementing two major tactical moves: addressing account sharing and building an advertising business. The company has successfully operationalized its paid sharing solution while growing its advertising tier, with approximately 55% of new sign-ups choosing the ad-supported option in the fourth quarter of 2024.
The company expects to double its advertising revenue in 2025 after doubling it in 2024. While still a small portion of overall revenue, Netflix is building foundational capabilities including a first-party ad tech stack launching broadly in 2025, starting with the U.S. in April. This advertising business taps into an estimated $180 billion addressable market in the countries where Netflix operates.
Despite its impressive scale with over 300 million paying members, Netflix believes it has substantial room for growth across multiple dimensions. The company is particularly focused on scaling its advertising business, enhancing its live event offerings, expanding gaming capabilities, and leveraging artificial intelligence across the business.
Beyond traditional content, Netflix is actively exploring opportunities in live sports broadcasting. The company made its inaugural foray into this arena by streaming two NFL games on Christmas Day 2024, attracting nearly 65 million viewers. This successful debut has fueled Netflix's interest in acquiring more substantial NFL broadcasting rights. Chief Content Officer Bela Bajaria has expressed the company's openness to bidding for Sunday afternoon NFL games, a move that could disrupt existing agreements with networks like CBS and Fox. However, any significant changes in NFL broadcasting rights are unlikely before 2029, given the current media rights deals that extend through 2033 but include an option for the NFL to opt out in 2029.
"Never say never," Neumann said. "If there's a way to make economic sense and business sense about a broader package of sports, we remain open to it. But it's not something that's in our near-term horizon or something we see a clear path to." Neumann also emphasized that Bajaria gave that response while answering a string of rapid-fire questions, many of which were hypothetical.
"At the end of the day, our strategy has not changed. We are in the live event business, and sports is part of those live events," Neumann said. "We love the NFL. We love the NFL on Christmas Day … It was the largest streaming audience in the regular season for an NFL game in the U.S., so it was awesome. But that's kind of where we are right now. We want to keep finding these great eventized moments."
While fans are divided over the potential shift in NFL broadcasting to streaming platforms, with some expressing enthusiasm and others concerned about subscription costs and accessibility, Netflix's entry into live sports signifies a broader strategy to diversify its content offerings and attract a wider subscriber base.
These strategic initiatives reflect Netflix's dedication to providing diverse and high-quality content, aiming to deliver exceptional entertainment value to its global subscriber base. By continually expanding its content library and venturing into new domains like live sports, Netflix aims to enhance viewer engagement and attract a diverse audience.