Provides a global entertainment service offering TV series, films, games, and live programming.
★★★★★
★★★★☆
★★★★
Growing
What Netflix, does
Netflix operates a global streaming entertainment service offering TV series, films, games, and live programming.
Founded
1997
Los Gatos, California
CEO
Ted Sarandos & Greg Peters
Since 2023
Market cap
$282.52B
#51 in the world
Revenue (FY25)
$45.18B
+15.9% YoY
30-Second Summary
A plain-English explanation of Netflix's business model
If you only remember one thing
Netflix makes money primarily by charging members recurring subscription fees to access its entertainment service. It also generates advertising revenue from its ad-supported plan. The company invests heavily in licensed and original content and distributes that content globally through its streaming platform.
Business Segments
Where Netflix,'s $45.18B Fiscal year 2025 (ended December 31, 2025) comes from
$45.18B
Fiscal year 2025
44% of revenue ·+15% YoY
32% of revenue ·+17% YoY
12% of revenue ·+11% YoY
12% of revenue ·+21% YoY
Business Model
How Netflix, makes money — the ecosystem flywheel
Create & License Entertainment
Reach a Global Audience
Strengths & Risks
What makes Netflix, strong — and what could go wrong
Global Distribution
Netflix operates its entertainment service across more than 190 countries and territories
Large Content Library
Netflix combines licensed and original TV series, films, games, and live programming
Recurring Subscription Model
Membership fees provide recurring revenue from customers who subscribe to the service
Multi-Device Platform
Members can access Netflix across connected TVs, mobile devices, computers, and other supported screens
Advertising Revenue
Netflix has expanded monetization through its ad-supported subscription offering
Financial Overview
Fiscal year 2025 (ended December 31, 2025)
$45.18B
+15.9% YoY
FY25
$10.98B
+26% YoY
FY25
$9.46B
+36.7% YoY
FY25
Netflix generated $45.2B of revenue in fiscal 2025, up 15.9% from fiscal 2024. Net income was $11.0B and free cash flow was $9.5B.
Financial History
5-year trend, fiscal years 2021–2025
$45.18B
+52% since FY21
Business Ecosystem
Who Netflix, depends on — and who depends on Netflix,
Content Creators
Netflix works with creators, studios, producers, and other rights holders to develop and license entertainment content
Technology & Distribution
Netflix uses technology and content delivery infrastructure to distribute entertainment to members globally
Advertisers
Advertisers purchase advertising opportunities through Netflix's ad-supported offering
Netflix
The global entertainment platform
Competitors
Companies that compete with Netflix for consumer entertainment time across streaming, television, digital media, and other forms of entertainment. Market caps use an October 1, 2026 snapshot.
Amazon
$2.7T
Entertainment competitor — Amazon competes for consumer leisure time through Prime Video, streaming content, and other digital entertainment
Disney
$174.97B
Direct entertainment competitor — Disney competes with Netflix through Disney+, Hulu, films, television, and other entertainment businesses
Warner Bros. Discovery
$77.71B
Entertainment competitor — Warner Bros. Discovery competes through streaming, television networks, films, and other media properties
Meta Platforms, Inc.
Connects billions of people through Facebook, Instagram, WhatsApp and Messenger, and monetizes that attention primarily through digital advertising.
Amazon.com, Inc.
Builds the global infrastructure for shopping, cloud computing, digital services, advertising, and AI.
Alphabet Inc.
