Netflix has Increased its Content Budget to $18 billion for FY25

According to Chief Financial Officer Spencer Adam Neumann, who was outlining the company's strategic priorities during an investor call on January 21, the global streaming giant Netflix plans to increase its cash content spend to an estimated $18 billion in 2025, up from $17 billion the year before. He also emphasized the significant growth potential in an increasingly competitive entertainment landscape.

"We're small in terms of view share and penetration everywhere around the world," Neumann said. Only around 6% of our estimated revenue market is being captured, and we have less than 50% of connected households worldwide. We still have a lot of room to develop.

The platform's emphasis on major content areas, such as high-profile scripted television shows, locally relevant original programming, and significant licensing agreements, will be fueled by the $18 billion investment. In keeping with Netflix's goal to broaden its selection, live content and interactive entertainment—like games—are also top priorities.

The disciplined approach to spending, which ensures alignment with revenue growth and margin targets, was emphasized by Neumann. "Our cash spend and content amortisation maintain a ratio of approximately 1.1, growing slower than our revenue," he said.

In addition to content, Netflix is making investments in improved user experiences, advertising capabilities, and new product development. The engineering and product teams are receiving a significant amount of funding to support games, live events, and ad-supported streaming options.  Additionally, a redesigned user interface is being developed with the goal of enhancing content discovery.

"We're making significant investments in our engineering and product teams to develop our live and gaming capabilities, advertisements, and new user interface to improve product discovery. As we expand our advertising sales organization and go-to-market capabilities, we're also investing in the marketing and sales line, primarily in the sales sector," Neumann stated.

With expenses predicted to increase by about 9%, Netflix has forecasted a 12–14% increase in revenue for 2025, continuing its trend of increasing margins. According to forecasts, content amortization will grow in the high single digits, slower than revenue growth, allowing for incremental margin gains.