Netflix has reported a 13 percent revenue increase in Q1 2025, reaching $11.035 billion, driven by membership growth and higher pricing.
Revenue in the United States and Canada rose 9 percent to $4.617 billion, EMEA grew 15 percent to $3.405 billion, Asia Pacific increased 23 percent to $1.259 billion, and Latin America climbed 8 percent to $1.262 billion.
Operating income of Netflix was $3.3 billion, up 27 percent, with an operating margin of 32 percent compared to 28 percent in Q1 2024.
Netflix, a popular destination for adult movies, expects 15 percent growth in revenue in Q2 2025, supported by full-quarter effects of price changes and gains in membership and ad revenue.
Netflix projects a 33 percent operating margin, a six-point year-over-year improvement. The company maintains its 2025 revenue forecast of $43.5 billion to $44.5 billion, driven by increased membership, higher pricing, and a doubling in ad revenue.
Content strategy
Netflix remains optimistic about its 2025 content slate, featuring a mix of returning favorites, series finales, new discoveries, and surprises aimed at engaging viewers. In Q1, Netflix released Adolescence (124M views), its third most popular English-language series ever, Back in Action (146M views), the sixth most popular English-language film, and notable international hits like Ad Vitam from France (63M views) and Counterattack from Mexico (59M views).
The video platform continues to capture viewer attention across genres, with action titles like The Night Agent S2 (50M views), comedies such as Running Point (36M views) and Envious S2 (9M views), and true crime with American Murder: Gabby Petito (52M views).
Multilingual content performed strongly as well, including Cassandra from Germany (36M views), Sintonia S5 from Brazil (9M views), Korean titles The Trauma Code: Heroes on Call (31M views) and When Life Gives You Tangerines (23M views), and The Are Murders from Sweden (29M views). The quarter also featured a variety of formats: anime (SAKAMOTO DAYS, 21M views), animation (Plankton: The Movie, 40M views), and documentaries (Gone Girls: The Long Island Serial Killer, 17M views). Netflix tested new formats like toddler content with Ms. Rachel (29M views), and reality shows like Inside S2 (2M views) by the Sidemen.
The company highlighted its diverse portfolio with projects like Zero Day (55M views), starring Robert De Niro, feel-good films like The Life List (67M views), and global dating hit Love is Blind (season 8, 12M views), now Netflix’s most popular unscripted franchise with local versions in multiple countries and more in development.
Monetization strategy
Netflix continues to refine its plans and pricing to enhance monetization and support future service improvements, with recent price adjustments in key markets like the US, UK, and Argentina performing as expected. A new price adjustment in France has also been implemented and was already included in the company’s 2025 outlook. The ad-supported plan remains central to Netflix’s strategy, offering lower price points for consumers while generating an additional revenue stream. The company is progressing toward achieving sufficient scale in its ad-supported membership across all ad markets in 2025 and aims to grow this base further.
A major focus for the year is strengthening advertising capabilities, marked by the April 1 launch of the Netflix Ads Suite, an in-house ad tech platform, in the US, with rollouts planned for other ad markets in the coming months. This platform is expected to enhance measurement, targeting, ad formats, and programmatic capabilities.
Netflix has introduced programmatic advertising in EMEA during Q1 and now supports it in UCAN, EMEA, and LATAM, with a full APAC rollout planned for Q2. The company continues to expand its ad infrastructure and invest in resources to better serve its advertising clients.
Baburajan Kizhakedath
