MUMBAI: Netflix executives are feeling rather chirpier about their prospects, even as storm clouds gather over the global economy. During their Q1 2025 earnings call, co-CEOs Ted Sarandos and Greg Peters dismissed concerns about consumer belt-tightening, insisting that home entertainment has historically been "resilient" during lean times.

"Entertainment historically has been pretty resilient in tougher economic times," Peters told analysts. "Netflix specifically also has been generally quite resilient, and we haven't seen any major impacts during those tougher times."

The streaming behemoth is ploughing ahead with its advertising ambitions, having just rolled out its proprietary ad tech platform in Canada and the US, with plans to expand to its remaining 10 ad markets in the coming months. Peters confidently predicted the company would "roughly double" its advertising revenue in 2025.
"We aren't currently seeing any signs of softness from our direct interactions with buyers," he said. "Actually, to the opposite, we're seeing some positive indicators from clients as we approach our upfront event."

The firm's first-party ad tech platform is already yielding dividends, offering "more flexibility for advertisers" and "fewer activation hurdles," according to Peters. In the US, Netflix has significantly expanded its targeting capabilities based on "life stage, interest, viewing mood" and third-party data.

Sarandos reiterated that the company's live strategy extends beyond sports, though he confirmed Netflix will broadcast a second NFL Christmas Day game in December 2025. The company will also stream the Taylor-Serrano boxing rematch in July, following on from the Tyson-Paul fight that generated substantial buzz.

When questioned about potentially competing head-to-head with YouTube in short-form content, Peters struck a pragmatic tone: "We think the biggest opportunity we've got is actually going after the roughly 80% share of TV time that neither Netflix nor YouTube have today."

Meanwhile, chief financial officer Spence Neumann assured investors that excess cash flow would predominantly be returned to shareholders through buybacks, absent any "meaningful M&A." The company maintains its full-year operating margin guidance of 29 per cent.