2 weeks Ago By Moneycontrol
Netflix is aiming for a $1 trillion market capitalisation and to double its revenue by 2030, according to a report by The Wall Street Journal. The ambitious targets, shared during the company’s annual business review in March, reflect its growing dominance as the world’s leading streaming platform. Despite economic uncertainty and shifting trade policies, executives expressed optimism, setting internal goals to grow global advertising revenue to around $9 billion and triple operating income from $10 billion in 2023.
Netflix, which currently has nearly $400 billion in market value, reported $39 billion in revenue last year. While its advertising income remains undisclosed, eMarketer estimates U.S.
ad sales will exceed $2.15 billion this year. At the end of 2023, Netflix had 301.
63 million subscribers and aims to reach 410 million by 2030. The company added 18.9 million subscribers globally in the final quarter—its last to report net subscriber gains.
Growth in saturated markets like the U.S. has led the streamer to prioritise international expansion, particularly in countries with high broadband usage such as India and Brazil.
The company’s leadership acknowledged the potential impact of President Trump’s newly announced tariffs, which have raised recession fears. However, they argued streaming may be more resilient during downturns: “if people stay home to watch shows and movies, instead of going to theatres or out to dinner.” Netflix’s ad-supported tier, launched in late 2022, has seen rising adoption.
In February, 43% of new U.S. subscribers chose the ad-supported option, up from 40% the previous month, according to Antenna.
With its ad business gaining momentum, Netflix plans to transition away from Microsoft’s technology in favour of its own ad tech in the U.S. The platform has also lured brands with live sports content and more competitive ad rates.
Netflix is set to showcase its offerings at a high-profile advertising event in New York City on 14 May..
