~ "Stable growth under headwinds" supported by live streaming and advertising strategies ~
📈 Behind Netflix's strong earnings
In the January-March quarter of 2025, Netflix posted revenue of $10.543 billion, up 13% year-over-year, and earnings per share (EPS) of $6.61, which beat market expectations. Despite increasing uncertainty in the macro environment, the company maintained a strong performance.
The following factors are behind this strong financial result:
- Effects of price revisions
Rate revisions in the U.S., U.K., and other countries boosted earnings. - Expansion of advertising business
From April 1, the company will launch its own advertising platform in the United States. In the future, it will be gradually expanded to other countries. - Live Streaming Enhancements
The expansion of live content, such as the professional wrestling organization WWE's "RAW," has captured viewers' interest.
In addition, from this time, we have stopped disclosing the number of subscribers and ARM (average revenue per user) on a quarterly basis, shifting our focus to profitability. Our stance of disclosing the number of subscribers at each important milestone confirms our management from a long-term perspective.
🆚 Trends of major competitors (as of Spring 2025)
In addition to Netflix, Disney+, Amazon Prime Video, and HBO Max (Max) are competing in the video streaming market with their own strategies. The latest trends in each are summarized below.
🎬 Disney+
Disney+ has subscribers as of Q1 2025 124.6 million and quarter-over-quarter Decrease of about 700,000 people Recorded. This is likely due to the contraction in the Indian market and the impact of price revisions.
- Earnings for Q1 2025 The $2.82 billion 。
- ARPU (average revenue per user) of $7.55 This is an increase from the previous fiscal year.
- Parent company Disney is in the process of integrating with Hulu, and in the fall of 2025 ESPN's Independent Streaming Service We are planning to start the season.
- By both strengthening content and developing sports, we aim to regrow the platform.
📦 Amazon Prime Video
Prime Video continues to expand globally with an overwhelming membership base and logistics ecosystem.
- Number of subscribers as of 2025 The Over 167 million 。 In 2029 269 million is projected and long-term growth is expected.
- Market Share is 22% in the U.S., ahead of Netflix (21%).
- revenue As of 2023 $14 billion , an increase of 12% year-on-year.
- Live Sports In the exclusive distribution of the NFL's "Thursday Night Football" Average 13.2 million viewers Earn. In addition, the company has acquired the rights to broadcast football in Europe.
🎥 HBO Max（Max）
In addition to high-quality original dramas and movies, HBO Max is rolling out a strategic ad-supported plan.
- Number of subscribers As of the end of 2023 Approx. 95.8 million 。 In 2025 150,000,000 Aim.
- 2023 Earnings The $7.7 billion The forecast for 2024 is $8.1 billion and an upward trend.
- ARPU Also in 2023 $11.09 From 2024 to $12.50 Upward outlook to.
- ** AVOD (with ads) and The company aims to generate $3.2 billion in annual revenue by 2029 through a hybrid strategy that includes SVOD (paid billing)**.
These data shows that Netflix is building a foundation for growth through advertising and live streaming, while its competitors are also looking to leverage their unique strengths to increase market share. The future of power will depend on the quality of content and the flexibility of the revenue model.
🌍 Current status and prospects of the video distribution market
By 2025, the global video streaming market is projected to reach $146.5 billion, up 8.5% year-on-year. The number of subscribers is expected to exceed 1.1 billion worldwide.
Netflix's ad-supported plans and live streaming have made it a popular choice in the face of global competition. Above all, the ad-supported Standard plan ($7.99 in the US) serves as a receptacle for those who are less financially strapped.
On the other hand, competitors such as Disney+, Amazon Prime Video, and HBO Max are also taking advantage of their respective strengths, and the power balance of the industry is likely to move further in the future.
🔍 Summary
Netflix's financial results for the January-March 2025 period are a good example of achieving stable earnings across three axes: pricing strategy, advertising revenue, and live streaming. Despite increasing competition, the company met investor expectations with unique content and a flexible business model.
Other companies are also drawing up their own growth strategies, and the video distribution market is moving into a new phase where "quality over quantity" and "profitability over the number of subscribers" will be questioned.
* The individual stocks described in this article are for informational purposes only. It is not intended to be a recommendation 。 What is the final decision on the investment? At your own risk Go ahead.
📚 Reference site
- Business Insider
- Investopedia (Netflix Earnings)
- The Verge
- Investopedia (Disney+ Earnings)
- Shacknews (Amazon Earnings Forecast)
- Business of Apps（Amazon Prime Video）
- Priori Data（HBO Max）
https://prioridata.com/data/hbo-max-statistics/ - Business of Apps (HBO Max App Revenue)
- The Business Research Company (the entire video distribution market)
- Market.us (Streaming Service Statistics)
