What Netflix does

Netflix is a global streaming platform operating in 190+ countries, serving consumer households and advertisers through subscription and ad-supported tiers. Its core product is a cloud-delivered catalog of original and licensed TV series, films, anime, documentaries, and live events, complemented by mobile and cloud gaming (including a phone-as-controller experience), merchandise through Netflix Shop, and physical entertainment destinations through Netflix House. The technology stack combines a personalization and recommendation engine, an ad-tech platform with AI-powered creative generation, cloud gaming infrastructure, and proprietary AI filmmaking tooling (most recently via the InterPositive acquisition) integrated into a globally distributed production footprint that includes Netflix Animation Studios (1,000+ employees across three facilities on three continents) and the $1B Fort Monmouth, New Jersey studio complex.

Netflix monetizes through three primary streams: recurring monthly subscription revenue from autorenewing consumer plans (ad-supported and ad-free, with Extra Member add-ons driving land-and-expand dynamics), advertising revenue from the ad-supported tier (4,000+ active advertisers, ~$1.5B in 2025 scaling to ~$3B projected in 2026), and content licensing revenue from international rights arrangements. Distribution combines direct-to-consumer signup on netflix.com and mobile apps with channel partnerships (Spectrum App Store, Orange Spain Love bundles) and marketplace presence across iOS, Android, smart TVs, Roku, Apple TV, Fire TV, and gaming consoles.

Q1 2026 revenue was $12.25B (16% YoY growth) with full-year 2026 guidance of $50.7B-$51.7B, supported by a 29.7% operating margin (projected to 31.5%), $12.5B free cash flow guidance, and 27.1% return on invested capital. The company is incorporated in Delaware as Netflix, Inc., trades on NASDAQ under NFLX, and operates from Los Angeles, California with production facilities in the U.S., Canada, and Australia.

Name

Netflix

Legal name

Netflix, Inc.

Website

https://netflix.com

Company type

Public

Founded year

1997

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

Netflix is a global streaming platform serving consumer households and advertisers across 190+ countries via subscription and ad-supported tiers. It offers original and licensed content, anime, live events, gaming, and merchandise through digital and physical channels.

Ownership category

akta.pro rank

Product category

Video Streaming Services

NAICS

Media Streaming Distribution Services, Social Networks, and Other Media Networks and Content Providers (516210), Motion Picture and Video Distribution (51212), Broadcasting and Content Providers (516)

SIC

Cable & Other Pay Television Services (4841), Television Broadcasting Stations (4833), Services-Amusement & Recreation Services (7900)

akta.pro primary industry

General Entertainment SVOD Platforms (MPACAAAA)

akta.pro secondary industries

Live TV Streaming (vMVPD/IPTV OTT) (MPACAAAD), On-Demand Music Streaming (Interactive) (MPAIACAA), Transactional Video Platforms (TVOD/EST) (MPACAAAJ), Gaming & Interactive Entertainment (Digital Goods, Subscriptions) (CRAFAIAC), News Streaming Platforms (MPACAAAF)

Keywords

• Video streaming service
• Original content production
• Subscription streaming
• Digital entertainment platform
• Cloud streaming infrastructure

Headquarters

HQ city

Los Gatos

HQ country

United States

HQ region

North America

Offices6 records

Markets served

GTM type

B2C

Offering type

Digital Commerce or Content

Cost components

Operations, Personnel, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Streaming subscriptions: Recurring monthly subscription revenue from consumer plans (ad-supported and ad-free), with autorenewal billing, plan upgrades, and Extra Member add-ons generating land-and-expand revenue.
2. Advertising: Revenue from the ad-supported plan, sold to more than 4,000 advertisers globally; 2025 ad revenue ~$1.5B with 2026 projected near $3B.
3. Content licensing: Licensing revenue from international rights (e.g., WWE) and other content distribution arrangements.

Pricing tiers

Go-to-market motion4 records

Distribution channels1 record

Marketing channels5 records

Core offering

Netflix operates a global subscription-based video streaming service that delivers licensed and original TV series, films, anime, documentaries, and live events to consumers in more than 190 countries via web, mobile, smart TV, and console apps, with both ad-supported and ad-free tiers plus an Extra Member add-on. The company is also expanding into mobile and cloud gaming (Netflix Games), branded merchandise (Netflix Shop), and physical entertainment venues (Netflix House), while monetizing its ad-supported tier through an AI-powered advertising platform sold to 4,000+ advertisers.

Differentiator

Problem solved

Functional benefit

Brands

• Netflix House: Physical entertainment destinations referenced on Netflix.com
• Netflix Shop
• Netflix Tudum
• Netflix Games
• Netflix Animation Studios
• Netflix Puzzled
• Netflix Playground

Products and services

• Netflix Streaming Subscription Global subscription video-on-demand service delivering licensed and original TV series, films, anime, documentaries, and live events to consumers in 190+ countries via web, mobile, smart TV, and console apps, offered in ad-supported and ad-free tiers with monthly autorenewal billing.
• Netflix Games Mobile and cloud-streamed games included with a Netflix subscription, featuring a phone-as-controller model that turns the user's smartphone into a controller for TV-playable games with voice and chat capabilities.
• Netflix Shop Official Netflix-operated merchandise e-commerce store selling branded products tied to Netflix originals and franchises.
• Netflix House Physical entertainment destinations where Netflix consumers can experience the brand and its franchises in person, referenced across Netflix.com.

Quantifiable outcome

• Net adds of ~100M subscribers between 2023 and 2025
• +7 more outcomes

Segments4 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration5 records

AI capability6 records

Feature5 records

Partnerships

14 partnerships are on record, tiered core, flagship and minor.

• Spectrum (Charter Communications)coreChannel Partner/ Reseller/ Distributor · 23 June 2026Integration of Netflix into the Spectrum App Store, exposing the streaming service to Spectrum's broadband and pay-TV subscriber base and enabling content discovery alongside other apps.
• WIT StudiocoreStrategic or Co-development Partner · 23 June 2026Anime production partner on The One Piece and other titles; part of Netflix's slate of co-productions with Japanese studios showcased at Annecy.
• Sunrise × SHAFTcoreStrategic or Co-development Partner · 23 June 2026Co-production arrangement for the Fool Night anime adaptation; combines two Japanese studios to deliver the project for Netflix.
• Omnicom MediaflagshipGTM or Marketing Partner · 22 June 2026Multi-year data collaboration as Netflix's first major data partner for AI-powered, personalized ad creatives. Combines Netflix's first-party data with Omnicom's Acxiom audience intelligence and media scale to build brand-creative templates and AI-driven formats. Announced around Cannes Lions 2026.
• Acxiom (via Omnicom Media)coreTechnology or Integration · 22 June 2026Audience intelligence arm of Omnicom providing data infrastructure for the Netflix–Omnicom AI-powered ad creative collaboration.
• MattelcoreGTM or Marketing Partner · 1 January 2026Collaboration on Hot Wheels die-cast collectibles featuring Netflix IP, including a K-Pop Demon Hunters-themed model. Cross-promotional tie-in between Netflix's franchises and Mattel's toy lines.
• TMS EntertainmentcoreStrategic or Co-development Partner · 1 January 2026Animation studio partnering with Netflix on SAKAMOTO DAYS anime, supporting Netflix's push into prestige anime.
• Kyoto Animation, Blue Spirit, Studio MircoreStrategic or Co-development Partner · 1 January 2026Anime production and co-development partners supporting Netflix's broader anime slate alongside WIT Studio, TMS, Sunrise, and SHAFT.
• Annecy International Animation Film FestivalcoreGTM or Marketing Partner · 1 January 2026Showcase partnership used to debut and promote Netflix anime and animation projects to press, creators, and global audiences.
• Tom HanksflagshipStrategic or Co-development Partner · 1 January 2026Executive producer partnership on docuseries such as The American Experiment, lending prestige and publicity weight to Netflix's factual programming.
• Shawn Levy (director)coreStrategic or Co-development Partner · 1 January 2026Director partnership on a streaming series adapting a Madonna biopic, part of Netflix's strategy to attach high-profile filmmakers to tentpole projects.
• Brian Knappenberger (director)minorStrategic or Co-development Partner · 1 January 2026Director collaboration on a documentary feature in development at Netflix, supporting the docuseries and prestige factual slate.
• Davis Polk & WardwellminorImplementation/ SI/ Consulting Partner · 1 January 2026Legal advisor to Netflix on its $1.8B senior notes offering, supporting capital markets execution.
• Wilson Sonsini Goodrich & RosatiminorImplementation/ SI/ Consulting Partner · 1 January 2026Legal advisor to Netflix on its $1.8B senior notes offering alongside Davis Polk.

Scale indicators24 records

Recent moves7 records

Expansion highlights8 records

Emerging players

• Roku: Roku operates a leading streaming distribution platform and ad-supported free streaming channel (The Roku Channel) that competes with Netflix for viewer time and ad dollars. Netflix was reportedly in acquisition talks with Roku, signaling their strategic overlap.

Broad incumbents

• Spotify: Spotify is a subscription + advertising streaming business for audio, with a comparable freemium/ad-supported tier model and significant advertising scale. It serves as a useful comparable for subscription+ads business model mechanics and user engagement metrics.
• Alphabet (YouTube / YouTube TV / YouTube Premium): YouTube is the largest ad-supported streaming video platform globally and competes for both viewer time and advertising budgets. YouTube TV is also a pay-TV streaming bundle competitor. Alphabet's ad-tech stack makes it the most direct competitive analogue to Netflix's emerging ad business.

Direct peers

• Amazon Prime Video: Prime Video is bundled into Amazon Prime and competes directly for the same household entertainment spend. Amazon's ad business, content investment (Thursday Night Football, MGM), and Prime bundling create head-to-head competition across subscription, advertising, and distribution.
• Hulu: Hulu is a subscription streaming competitor with ad-supported and ad-free tiers, owned by Disney. Its hybrid ad/subscription model and on-demand library directly mirror Netflix's ad-tier strategy and pricing architecture.
• Apple TV+: Apple TV+ is a premium subscription streaming competitor with prestige originals (Ted Lasso, Severance) and Apple device ecosystem integration. Apple is also a Netflix distribution and billing partner, creating a competitive-plus-partnership dual relationship.
• NBCUniversal (Peacock): Peacock is a subscription streaming competitor leveraging NBCUniversal's broadcast, film, and sports rights (Premier League, WWE). It is the most direct peer to Netflix's ad-tier strategy given its ad-supported foundation.
• Paramount Global (Paramount+): Paramount+ competes in subscription streaming with a strong sports (NFL, UEFA) and studio content slate (CBS, Paramount Pictures). As a smaller, more pressured competitor, it represents both a peer and a potential consolidation target.
• Warner Bros. Discovery (Max): Max/HBO is a direct premium streaming competitor and was Netflix's attempted $72B acquisition target before the deal collapsed. Overlapping HBO originals, Warner Bros. film slate, and Discovery's lifestyle content make it the most strategically intertwined peer.
• Walt Disney Company (Disney+): Disney+ is Netflix's closest direct competitor in subscription streaming globally, with a competing originals slate (Marvel, Star Wars, Pixar) and ad-supported tier. Disney's portfolio strength (parks, theatrical, sports via ESPN) makes it the most strategically significant rival for both subscribers and advertising dollars.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat7 records

Key risks7 records

Key highlights7 records

Customer concentration

• Xx.com/netflix
• Facebookfacebook.com/netflix
• LinkedInlinkedin.com/company/netflix

Revenue estimate

Valuation estimate

Number of profiles

Profiles5 records

Subsidiaries9 records

Funding overview

Funding rounds17 records

Investors10 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A12 records

Investments6 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Netflix