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Key Points
Netflix (NASDAQ: NFLX) has over 300 million global subscribers and is focusing on three main growth drivers: advertising, international expansion, and content franchises. Advertising revenue has doubled and is set to double again in 2025, with approximately 94 million users on the ad-supported plan, representing nearly 30% of its subscriber base.
In Q2 2025, Netflix saw revenue growth of 23% (FX-neutral) in both Asia-Pacific and Latin America, outperforming the U.S. region’s 15% growth. The company is targeting emerging markets with localized content and affordable pricing strategies, capitalizing on billions of potential viewers and rising internet penetration.
Content franchises such as Stranger Things and Bridgerton have become central to Netflix’s strategy, allowing for multiple revenue streams and improved cost efficiency. Collectively, these elements represent a significant transformation in Netflix’s business model, shifting the focus from subscriber count to a diversified revenue generation strategy.
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