How Netflix makes money

Q: How much does Netflix spend on shows and films?

It counted $16.4B as the cost of its shows and films in 2025, about 36.3% of its revenue. In cash it paid $17.7B that year, because shows it makes are paid for before they come out.

Q: How many subscribers does Netflix have?

Netflix passed 325 million paid memberships during the last months of 2025, its letter to shareholders says.

Q: Does Netflix own its shows or rent them?

Both. In 2025 it counted $8.7B for shows it licenses from studios and $7.7B for ones it made. Its report says shows it makes need more cash up front. In return, a show it owns doesn't leave when a license runs out.

Q: How much profit does Netflix make?

Netflix made $13.3B in operating income in 2025. After interest and taxes, its net income was $11B, about 24.3% of revenue.

From Netflix's 2025 annual report · Updated Oct 2026

The short answer

Netflix makes almost all of its money from monthly memberships: $45.2B in 2025, from more than 325 million paid memberships, plus a fast-growing slice from ads.

Its biggest cost by far is shows and films, about 36.3% of revenue. A show costs the same to make however many members watch it, so the more members share it, the more is left over: Netflix kept 29.5% of its revenue as operating profit in 2025.

Sources:sec.gov ·2025 2

$45.2Bsec.gov ·2025
Revenue in a year
325 millionsec.gov ·2025
Paid memberships
36.3%sec.gov ·2025
Of revenue counted as the cost of shows and films
29.5%sec.gov ·2025
Operating margin: kept as operating profit

Members, a month at a time

Members pay a monthly fee, and plans cost $1–$37 a month, depending on the country and the plan. Because members pay a month at a time, Netflix held only $1.8B at the end of 2025 that it hadn't earned yet.

Revenue grew 16% in 2025, and Netflix's report gives three reasons: more members, higher prices and more ad money. A cheaper plan with ads costs members less, and advertisers pay to reach them too: ad revenue passed $1.5B, more than 2.5 times the year before. And someone watching on a friend's account can be added as an extra member, for $2–$9 a month.

United States and Canada: $20B

Europe, Middle East and Africa: $14.5B

Latin America: $5.4B

Asia-Pacific: $5.4B

Netflix's revenue in 2025 by part of the world, from its Form 10‑K. Asia-Pacific grew fastest, 21% in a year, against 15% in the US and Canada.

Sources:sec.gov ·2025 2

Where the money goes

Shows and films come first: $16.4B counted as cost in 2025, some licensed from studios and some made by Netflix itself. Running the service, from delivering the video to card fees and customer service, took $6.9B. Marketing took $3.3B, the engineers behind the app and its recommendations $3.4B, and the head office $1.9B.

What was left from running the business was $13.3B, about 29.5% of revenue, up from 26.7% the year before.

Shows and films: $16.4B

Running the service: $6.9B

Marketing: $3.3B

Technology: $3.4B

Head office: $1.9B

Operating profit: $13.3B

Where Netflix's $45.2B of revenue went in 2025, from its Form 10‑K.

Sources:sec.gov ·2025 2

Paid now, counted later

Netflix doesn't count a show's whole cost the day it pays. It spreads the cost over the time people are expected to watch, starting the month the show comes out, and never over more than 10 years. More is counted early, because most people watch a new show soon after it lands: on average, over 90% of a title's cost is counted within four years.

The cash moves sooner. Shows Netflix makes itself are paid for while they're filmed, well before they stream. In 2025 it paid $17.7B in cash for shows and films, $1.3B more than it counted as cost. And it had agreed to pay $24B more for shows in the years ahead, $11.5B of it within a year.

Source:sec.gov ·2025

Common questions

How much does Netflix spend on shows and films?

It counted $16.4B as the cost of its shows and films in 2025, about 36.3% of its revenue. In cash it paid $17.7B that year, because shows it makes are paid for before they come out.

Source:sec.gov ·2025

How many subscribers does Netflix have?

Netflix passed 325 million paid memberships during the last months of 2025, its letter to shareholders says.

Source:sec.gov ·2025

How does Netflix make money from ads?

It sells ads on a cheaper plan. Advertisers pay to reach members on the cheaper plan. Ad revenue passed $1.5B in 2025, more than 2.5 times the year before, but it's still a small part of $45.2B in revenue.

Sources:sec.gov ·2025 2

Does Netflix own its shows or rent them?

Both. In 2025 it counted $8.7B for shows it licenses from studios and $7.7B for ones it made. Its report says shows it makes need more cash up front. In return, a show it owns doesn't leave when a license runs out.

Source:sec.gov ·2025

How much profit does Netflix make?

Netflix made $13.3B in operating income in 2025. After interest and taxes, its net income was $11B, about 24.3% of revenue.

Source:sec.gov ·2025

Try it yourself

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