Netflix Is Just Getting Started: Here Are 3 Growth Drivers for the Next Few Years

Core Insights - Netflix has evolved from a DVD rental service to the world's largest streaming platform with over 300 million global subscribers, successfully reinventing itself through strategies like password sharing crackdown, advertising expansion, and disciplined content management [1] Group 1: Growth Drivers - The next phase of growth for Netflix is expected to come from three main drivers: advertising, international expansion, and content franchises [2] Group 2: Advertising Scale - Netflix's advertising segment, launched two years ago, has become a significant growth pillar, with approximately 94 million users (nearly 30% of the subscriber base) on the ad-supported plan as of Q2 2025; ad revenue doubled last year and is projected to double again in 2025 [4][5] - The shift to advertising represents a high-margin revenue stream, allowing Netflix to enhance profitability without solely depending on subscription increases; the company is developing its own advertising capabilities through the Netflix Ads Suite to capture more value [5] - If the current growth trajectory continues, advertising could rival subscriptions as a major revenue source, a scenario that seemed unlikely a few years ago [6] Group 3: International Expansion - Despite its large size, Netflix's global market potential is not fully tapped; while the U.S. and Canada are mature markets, Asia-Pacific and Latin America are emerging as key growth areas, with revenue in these regions growing 23% (FX-neutral) in Q2 2025, compared to 15% growth in the U.S. [7] - Netflix is investing in regional studios and talent to create compelling local content that can achieve both local success and global appeal, as evidenced by hits like "Squid Game" and "Bad Influence" [9]