Netflix CFO says $18 billion content spend is nowhere near ceiling
Netflix CFO says $18 billion content spend is nowhere near ceiling
Spencer Neumann had the chance to discuss multiple topics Netflix has at the front of its mind at the Morgan Stanley Technology, Media, and Telecom conference on Wednesday.
What will the number be that makes Netflix decide to put a cap on its content spending? Company CFO Spencer Neumann had the chance to provide insight on that topic and others on Wednesday, at the Morgan Stanley Technology, Media, and Telecom conference. Neumann revealed that Netflix’s content budget had risen from previous years, and discussed what topics the streamer is focusing on as it continues to evolve.
Key Details:
- Neumann said Netflix will spend around $18 billion on content this year.
- The CFO says there are lots of opportunities for growth for the streamer.
- He reiterated Netflix’s stance that full-season sports deals likely aren’t in the cards for the service.
In his comments, Neumann explained how Netflix arrives at its content budget each year. He says the company is fairly adept at predicting its revenue from quarter to quarter, and that based on its formula, the company’s 2025 content spend of $18 billion is “not anywhere near a ceiling.”
That $18 billion budget is itself a reflection of the fact that Netflix could continue to grow its outlay on content in the future. Through 2023, the streamer peaked its content spend at $17 billion, but the take-off of its ad-supported tier and successful measures to combat password-sharing have helped revenue grow.
Neumann also spoke about the streamer’s potential for continued growth in viewership going forward. Netflix captured 8.6% of all TV viewing in January 2025, second-most of any streaming service behind YouTube’s 10.8%. That 8.6% represents a new high water mark for Netflix, but Neumann sees an opportunity to expand that number further.
“There’s roughly 80% of the TV share that neither [YouTube and Netflix] are capturing,” the CFO said. “We’ve got a pretty good sense over time of the ability to kind of drive demand and revenue from our investments across the business. So, that’s our big growth opportunity.”
According to Neumann, there has not been any major shift in how Netflix views live sports programming. The streamer sees the success of events like “The Roast of Tom Brady” and other comedy specials as proof that live programming doesn’t have to be exclusively about sports. He also notes that any sports that do appear on the streamer must be eventized.
Neumann said:
Live creates more appointment viewing, more conversation … We saw with the Tom Brady roast. We saw it with John Mulaney on the talk show side. We saw it with the [Jake] Paul-[Mike] Tyson fight, with the NFL on Christmas Day, and now with WWE. We are in those big, eventized moments…But not all live content works for us … and being in the business of regular season, of full seasons of big sports, we haven’t found that yet to be something that we necessarily need to deliver.
Netflix announced another of its marquee sports offerings on Thursday, when it revealed that it would stream another boxing match between Amanda Serrano and Katie Taylor in July. Netflix accounts for a growing portion of the global sports streaming content spend, and while that commitment will continue to grow along with the rest of its content budget, it’s clear the world’s largest streamer is still very mindful with its money.
Netflix
Netflix is a leading subscription-based video streaming service that offers on-demand access to an extensive library of over 3,000 movies, 2,000+ TV shows, and a growing collection of acclaimed Netflix originals. Renowned for producing groundbreaking content, Netflix has become a cultural powerhouse with hit originals like “Stranger Things,” “Wednesday,” “Squid Game,” “The Crown,” “Tiger King,” “Bridgerton,” “The Witcher,” and “Black Mirror.”