
"Sector" = median of Communication Services across 34 companies
Netflix, Inc. is a global streaming entertainment service that offers a wide variety of award-winning TV series, films, documentaries, and mobile games across numerous genres and languages. Founded in 1997 and headquartered in Los Gatos, California, Netflix has transformed from a DVD-by-mail service into the world's leading internet television network with over 260 million paid memberships in more than 190 countries. The company produces and licenses content, distributing it exclusively through its subscription-based streaming platform, which is accessible on internet-connected devices such as smart TVs, game consoles, mobile phones, and computers.
Netflix generates revenue primarily from monthly subscription fees paid by its members, offering three tiers of service: Standard with ads, Standard, and Premium. The company's business model focuses on attracting and retaining subscribers through a combination of original content production and licensed programming. In 2025, Netflix reported total revenue of $46.9 billion, with the vast majority coming from streaming subscriptions. The company also generates modest revenue from its DVD rental business (phasing out) and licensing of original content to third parties. Key financial metrics show strong profitability with a net profit margin of 28.5% and robust free cash flow generation.
Netflix operates in the highly competitive Communication Services sector, specifically within the Entertainment industry. It competes with traditional media companies like Disney, Warner Bros. Discovery, and NBCUniversal, as well as tech giants such as Amazon (Prime Video), Apple (Apple TV+), and Google (YouTube). Netflix differentiates itself through its massive global subscriber base, data-driven content recommendations, and substantial investment in original programming across diverse markets. The company's market capitalization of $343 billion and EV/EBITDA of 11.8x reflect its position as a dominant player in the streaming wars, though it faces increasing competition and market saturation in mature regions.
Netflix's target audience is broad, appealing to a wide demographic of consumers who seek on-demand entertainment. The company's content strategy spans multiple genres and languages to cater to diverse tastes globally, with significant investments in local-language originals for international markets. Geographically, Netflix's largest markets are the United States and Canada (UCAN), followed by Europe, Middle East, and Africa (EMEA), Latin America (LATAM), and Asia-Pacific (APAC). As of 2025, the UCAN region contributes about 43% of revenue, while international markets account for 57%, highlighting the company's global reach and ongoing expansion efforts.
An auto-generated descriptive profile based on company data, for informational purposes only.
Netflix shares plunged 7.26% to 68.95 USD following disappointing guidance that triggered a broad market sell-off. The stock decline was exacerbated by rising Middle East tensions and a broader tech rout, with chip stocks extending losses. Analysts are debating whether the dip presents a buying opportunity, while some highlight Netflix's AI strategy as a long-term positive. The company's guidance miss overshadowed its strong decade-long performance.
Latest saved period: March 2026 · 2026-03-31
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