Netflix revenues grow despite tougher economic climate

The streaming giant earned nearly $2.9bn in net income in the period, exceeding Wall Street’s forecasts.

Netflix attributed its 12.5% growth in revenue both to higher subscription prices and to “membership growth.” At the end of 2024, Netflix said it had roughly 301m global subscribers.

In late January, the company increased its pricing across the board, raising its standard plan in the US to $17.99 a month, its ad-supported plan to $7.99, and its premium plan to $24.99.

Despite fears of recession prompted by President Trump’s tariff war, Netflix said it continues to forecast full-year revenue of between $43.5bn and $44.5bn.

The company said in a letter to shareholders that its “revenue and profit growth outlook remains solid,” and that it was not making any changes to its forecast for the year.

Netflix’s co-CEO Greg Peters said on the company’s earnings call: “Based on what we are seeing by actually operating the business right now, there’s nothing really significant to note.

“We also take some comfort that entertainment historically has been pretty resilient in tougher economic times. Netflix, specifically, also, has been generally quite resilient. We haven’t seen any major impacts during those tougher times, albeit over a much shorter history,” he said.

Netflix has also been looking to build its advertising revenues in 2025.

The streamer launched its in-house ad-tech platform in early April in the US, with plans to extend into other markets in the coming months.

“We believe our ad-tech platform is foundational to our long-term ads strategy,” the company said. “Over time, it will enable us to offer better measurement, enhanced targeting, innovative ad formats and expanded programmatic capabilities.”

The company released hits such as the limited series Adolescence, drama thriller Zero Day and the unscripted series Temptation Island during the quarter.