The $18 billion investment will drive the platform’s focus on key content areas, including big-budget scripted television series, original programming tailored to regional audiences, and impactful licensing deals. Live content and interactive entertainment, such as games, are also high on the agenda, reflecting Netflix’s ambition to diversify its offerings.
Neumann underscored the disciplined approach to spending, ensuring alignment with revenue growth and margin targets. “Our cash spend and content amortisation maintain a ratio of approximately 1.1, growing slower than our revenue,” he explained.
Beyond content, Netflix is investing in product innovation, advertising capabilities, and enhanced user experiences. Substantial resources are being allocated to the product and engineering teams to bolster ad-supported streaming options, live events, and games. A revamped user interface aimed at improving content discovery is also in development.
“We’re pretty heavily investing into our product and engineering teams to build out ads and live and games capabilities and also our new user interface to enhance our product discovery. We’re also investing in the marketing and sales line, mostly on the sales side as we build out our ads sales organisation and go-to-market capabilities,” Neumann said.Netflix has projected a 12 to 14% revenue growth for 2025, with expenses expected to grow around 9%, maintaining a trajectory of improving margins. Content amortisation is forecast to grow in the high single digits, below the pace of revenue growth, enabling incremental margin gains.Neumann reiterated the company’s long-term vision: “The opportunity ahead is vast, and we remain focused on growing engagement and delighting a broader audience worldwide. By strategically deploying resources, we aim to deliver sustainable growth while meeting the evolving needs of our viewers.”
In a letter to shareholders, the company said that its 2024 revenue grew by 16% year-on-year to $39 billion, with operating margins expanding by six points to 27%. Operating income exceeded $10 billion for the first time in the company’s history.
During the fourth quarter ending December, revenue increased by 16% year-on-year to $10.2 billion, driven by 19 million paid net additions, while operating income rose by 52% year-on-year. Netflix ended fiscal 2024 with 302 million memberships.
The company said that the Q4 content slate outperformed expectations, with Squid Game 2 on track to become one of Netflix’s most-watched original series. Carry-On joined the all-time top ten films list, while the Jake Paul vs. Mike Tyson fight became the most-streamed sporting event ever, it added. On Christmas Day, Netflix delivered the two most-streamed NFL games in history.
