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Netflix plans $18bn content investment for 2025

Netflix plans $18bn content investment for 2025

Broadcast Pro13-03-2025
The $18bn cash content spending would be an 11% increase from last year's $16.2bn.
Netflix is set to invest approximately $18bn in content production in 2025, marking an 11% increase from its $16.2bn budget in 2024. Chief Financial Officer Spencer Neumann announced the expanded spending, emphasising that the company is far from reaching a ceiling on its content investment. 'We're not anywhere near a ceiling. I think we are still just getting started,' he stated.
The budget increase will fund a diverse lineup of high-profile projects, including The Electric State, a sci-fi film directed by the Russo Brothers and starring Millie Bobby Brown and Chris Pratt. The Russo Brothers, known for their successful collaboration with Netflix on The Gray Man, continue their partnership with this upcoming production. Additionally, Netflix is allocating substantial resources to its 'Extraction' franchise, Zack Snyder's Rebel Moon and Army of the Dead, as well as hit series like Wednesday and Bridgerton. The platform is also strengthening its offerings in documentaries, K-dramas, and anime to cater to its global audience.
Netflix's strategic growth extends beyond content production. Following a period of strong revenue acceleration in 2024, with nearly 20% revenue growth and a six-percentage-point margin expansion, the company continues to focus on enhancing entertainment value while expanding revenue streams. Key initiatives include tackling account sharing and expanding its advertising business. Netflix's paid sharing model is now fully operational, and the advertising tier has seen significant adoption, with about 55% of new subscribers opting for the ad-supported plan in Q4 2024.
Looking ahead, Netflix expects to double its advertising revenue in 2025, following a similar achievement in 2024. To support this growth, the company is launching a first-party advertising technology stack, set to roll out broadly starting in the US in April. This move aims to capture a share of the estimated $180bn addressable advertising market across Netflix's operating regions.
As Netflix continues to scale, the company is also exploring new content formats, including live events and gaming. A major highlight of this strategy is its growing interest in live sports. Netflix made its debut in sports broadcasting by streaming two NFL games on Christmas Day 2024, drawing nearly 65m viewers. Encouraged by this success, the company is considering bidding for additional NFL broadcasting rights, including Sunday afternoon games, potentially challenging networks like CBS and Fox. However, major shifts in NFL broadcasting rights are unlikely before 2029, as current deals extend through 2033 with an opt-out option in 2029.
'Never say never,' Neumann said regarding future sports acquisitions. 'If there's a way to make economic and business sense for a broader package of sports, we remain open to it. But it's not something that's in our near-term horizon.'
Despite mixed reactions from fans about streaming-based NFL broadcasts, Netflix's venture into live sports aligns with its broader strategy of diversifying content and engaging a wider subscriber base.
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