Last Updated -
February 26, 2026
Explore the business model, global strategy, and market performance including insights into its position in China.
Netflix, Inc. was founded in 1997 by Reed Hastings and Marc Randolph and is headquartered in Los Gatos, California. It evolved from a DVD-by-mail service into a global subscription entertainment platform that offers TV series, films, and games, with an ad-supported option alongside traditional plans. Netflix states its mission as “to entertain the world.”
The company combines licensed titles with a large slate of Netflix originals produced and commissioned across many countries and languages. Netflix reports over 300 million paid memberships across more than 190 countries, making it one of the largest paid entertainment services globally. In 2025, Netflix also shifted investor reporting away from regular quarterly subscriber updates toward revenue and engagement, including a semi-annual engagement report.
Netflix generates most of its revenue from paid streaming memberships sold in tiered plans, including an ad-supported option. At the end of 2024, Netflix reported 301.6 million paid memberships and $39.0 billion in revenue, which underlines its scale in global paid streaming.
In market positioning, Netflix sits at the top of paid streaming by membership scale, with a large content budget and global production footprint. Competition remains intense from Disney+, Amazon Prime Video, Apple TV+, and other regional services, which pushes Netflix to defend attention through a steady release cadence, stronger ad monetization, and selective moves into live events.
Netflix does not offer its streaming service in mainland China as of January 2026. Netflix’s own help center lists China among the territories where the service is not available.
Instead of operating locally, Netflix’s China exposure has come through indirect routes such as content licensing and cross-border production. A notable example is the 2017 licensing agreement with iQiyi that brought a subset of Netflix original series to a Chinese platform under China’s rules for imported online video content.
The market itself is dominated by domestic streaming platforms, led by iQiyi, Tencent Video, and Youku, which combine local content pipelines with China-specific distribution and compliance.
For investors, this means Netflix has limited direct upside from China today, while China’s streaming growth largely accrues to local incumbents operating inside the regulatory perimeter.
Netflix’s growth plan is shifting from pure subscriber scale toward higher monetization per member, driven by advertising, live programming, and product improvements. In Q3 2025, Netflix reported 17% year-on-year revenue growth and pointed to membership growth, pricing, and ad revenue as the main drivers.
Challenges ahead include content cost inflation and a crowded attention market. Netflix’s CFO said the company expects about $18 billion in cash content spend in 2025, and Netflix competes for time against other streaming services plus social video and gaming.
This Company Profile was written by Dominik Diemer
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