Netflix, Inc. (NFLX)

Sector: Communication Services|Industry: Entertainment|Market Cap: $392.35B|Employees: 13K


Netflix is a leading global entertainment service with over 260 million paid memberships. Its primary revenue stream is monthly membership fees for streaming TV series, films, and games across various genres and languages. Netflix's competitive advantages include its extensive content library, global reach, and personalized recommendations, allowing it to maintain a strong market position.

  1. Filings
  2. Company Profile

Business Summary

Netflix, Inc. is a leading global entertainment service with over 260 million paid memberships in over 190 countries. It offers streaming of TV series, films, and games in various genres and languages. Members have the flexibility to control their viewing experience and change their subscription plans. Netflix's core strategy is global business growth within its operating margin target, focusing on enhancing member experience through compelling content and a user-friendly interface.

Key Statistics

  • Employees: 13,000 (as of December 31, 2023)
  • Geographic Footprint: 190+ countries
  • Headquarters: Los Gatos, California
  • Founded: 1997
  • Revenue: $33.7 billion (FY2023)
  • Key Subsidiaries/Brands: Scanline VFX, Animal Logic

Leadership

  • Co-CEO: Ted Sarandos
  • Co-CEO: Greg Peters
  • CFO: Spencer Neumann
  • Executive Chairman: Reed Hastings

Key Financial Metrics

  • Annual Revenue: $33.7 billion (FY2023)
  • Net Income: $5.4 billion (FY2023)
  • Total Assets: $48.7 billion (FY2023)
  • Key Financial Highlights: 7% revenue growth year-over-year, 3 percentage point increase in operating margin.

Products and Services

Netflix offers streaming subscriptions for TV series, films, and games. It also provides a DVD-by-mail service (discontinued as of September 29, 2023). The company is expanding into consumer products and live experiences.

Key Business Segments

Netflix operates as a single operating segment, primarily generating revenue from monthly membership fees for streaming content.

Business Strategy

Netflix's core strategy is to grow its global subscriber base while maintaining its operating margin target. It emphasizes enhancing member experience by offering compelling content and improving its user interface. The company invests in original programming and is expanding into new product categories like games, consumer products, and live experiences.

Industry Context

Netflix operates in the highly competitive entertainment video market, competing with linear TV, other streaming providers (including those offering pirated content), video gaming providers, and other forms of entertainment. The company aims to differentiate itself through original content and a high-quality user experience.

Risk Factors

  • Competition in the entertainment market
  • Maintaining subscriber growth and engagement
  • Managing content costs and licensing
  • Dependence on third-party devices and platforms
  • Cybersecurity threats and data breaches

Last Updated

2024-01-26

(Generated from latest 10-K filing)