“We are still far from having reached a ceiling”. Netflix is not looking at the expense, and should not do so in the immediate future. While its competitors are considering reducing their investments in content creation, Prime Video and Disney+ in the first place, the SVoD leader confirms its strike force with an envelope of 18 billion dollars for the year 2025 alone.
This is an increase of 11% compared to last year, 16.2 billion at the time, proof of the good health of the firm that posted a record increase in its number of subscribers in the last quarter as well as growing revenues. For Spencer Neumann, CFO of Netflix, the company is “just getting started. We are far from having reached a ceiling”. It must be said that the company also sees its competitors stepping up their game.
Netflix sets out to conquer the market
In 2025, the SVoD landscape has never been so vibrant. While the company reigned supreme ten years ago, the giants have launched one after the other tour in subscription entertainment with varying degrees of success. Netflix is very aware of the need for its offering to reinvent itself and strengthen itself to maintain its dominant position. While 700 million people watch Netflix content, the firm is still small in the broader entertainment sector.
Indeed, although it is present in 40% of homes equipped with connected televisions worldwide, the company has only conquered 6% of its potential market. It still represents less than 10% of the total number of viewers worldwide, between linear television and free platforms such as YouTube, to name just one. “We see growth opportunities everywhere. It's more about where the biggest opportunities for growth and investment are... We want to stay in growth mode rather than maintenance mode for as long as possible”.
2025, a pivotal year
In addition to its $18 billion investments, which will only bear fruit in a few years, Netflix aims to put its content at the heart of viewers' concerns. In 2025, the company will see the return of its biggest hits. Squid Game season 3 is expected in June, while we are still waiting for news on Wednesday season 2 and the grand finale of Stranger Things.
Neumann took advantage of his presence at the Morgan StanleyTech, Media & Telecom conference to reaffirm his desire to bet more widely on live events. While the Jake Paul vs Mike Tyson fight didn't go off without a hitch, it did pull in excellent ratings and confirmed the firm's desire to multiply the number of offerings of this genre. It's nevertheless a technical challenge for the teams, and even Netflix seems ready to put in the resources.
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