Netflix Surpasses 325M Subscribers, Increases 2026 Content Spending to $20 Billion

As of the end of 2025, Netflix has surpassed 325 million subscribers, a significant increase from 301.2 million the previous year. This growth positions the company as a dominant force in the entertainment industry and reflects its ambitions for further expansion.

Fourth Quarter Earnings Report

In its fourth quarter report for 2025, Netflix exceeded financial expectations. The company reported quarterly revenue of $12.05 billion, marking a 17.6% increase year over year. Net income reached $2.41 billion, a 29.4% rise, translating to earnings of 56 cents per share.

Subscriber Growth and Viewing Patterns

Although Netflix has halted quarterly subscriber reporting, it plans to disclose updates when certain milestones are reached. In 2025, subscriber growth was notably lower compared to the previous year; the company added approximately 41 million paid subscribers in 2024. From July to December 2025, users collectively watched 96 billion hours on the platform, a 2% increase from the previous year, largely driven by an impressive 9% rise in viewership of Netflix originals during this period.

Content Investment Plans for 2026

Netflix aims to significantly increase its content spending in 2026. The company projects its content expenditure to reach around $20 billion, an increase from $18 billion in 2025. This indicates a content amortization growth of about 10% for the year ahead.

• Expansion of licensed titles starting this month, including new release live-action films under a partnership with Universal Studios.
• Licensing agreements with Paramount Skydance for about 20 shows, enhancing its international library.
• A deal with Sony Pictures to broaden the pay-1 licensing agreement globally.

Additionally, Netflix is launching video podcasts and has hosted over 200 live events to date, as per co-CEO Ted Sarandos.

Advertising Revenue and Future Projections

For the first time, Netflix has disclosed its ad revenue, reporting over $1.5 billion in 2025, a significant increase from the previous year. Looking ahead, Netflix forecasts 2026 revenues between $50.7 billion and $51.7 billion, reflecting a projected year-over-year growth of 12% to 14%.

Acquisition of Warner Bros. Discovery

In a strategic move to expand its market position, Netflix announced an all-cash offer to acquire Warner Bros. Discovery’s studios and HBO Max streaming business. This deal, estimated at $83 billion, aims to enhance Netflix’s content production capabilities.

Despite some opposition from theater owners, Netflix commits to maintaining a 45-day theatrical window for Warner Bros. movies. Sarandos emphasized the acquisition’s potential to diversify offerings and increase value for global audiences.

Competitive Landscape and Market Share

Netflix is acutely aware of the evolving TV consumption patterns and the increasing competition in the media landscape. In December 2025, Netflix captured an all-time high of 9.0% of U.S. TV viewing time, but linear TV continues to dominate with over 40% of total watch time.

The company is also closely monitoring competitors that distribute content across both linear and streaming platforms, reinforcing Netflix’s strategy to broaden its appeal in an increasingly competitive environment.