Netflix aims to become a trillion dollar company, but its economic impact is “easily overlooked,” says Co-CEO.
good morning. Many businesses continue to focus on growth even during uncertain times. For example, consider the entertainment giant. Netflixa Fortune 500 company with a market capitalization of nearly $450 billion with a big target.
Netflix co-CEO Ted Sarandos spoke to the audience during a fireside chat at the Semafor’s World Economy Summit on Wednesday in Washington, DC. Netflix’s streaming service accounts for around 10% of TV general viewing, and the company has “huge space to grow,” he said. “In the past five years, we have doubled our revenues, increased our profits 10 times and increased our market capitalization three times,” he added.
There’s a path to a market capitalization of $1 trillion, Sarandos said. “But it all depends on being well done,” he said. Sarandos said the in-person experiences of Netflix’s most popular shows are the creation of consumer products based on “Squid Game Experience” and shows as an additional revenue stream. Trillion Dollar Club Currently, it includes members from several major high-tech companies, and Berkshire Hathawaythe first non-technology company in the United States reached a market capitalization of $1 trillion.
Netflix, which Sarandos called the Tech and Entertainment Company, is moving forward at full speed despite the economic uncertainty that puts pressure on consumer discretionary spending. The company announced its first quarter revenue results released on April 17th. Netflix has beaten analyst expectations in both revenue and profit. Revenues were $10.54 billion compared to an estimated $10.51 billion, while earnings per share exceeded the analyst’s estimated $6.61 $5.71.
“By reinvesting in your business, we prioritize profitable growth,” Netflix CFO Spence Neumann said in a revenue call. “We’re still liquid enough. These are key to us and our top priority.” In the call, the executives pushed the idea that the company’s wide range of subscription plans, including $8 ads per month, will encourage flexibility if they want to save money. luck It has been reported.
In discussions on Wednesday, Sarandos estimated that Netflix’s impact on the US economy from 2020 to 2024 included a $145 billion contribution. Additionally, 140,000 production jobs, and 500 production, he said, compared shot film or television series from all 50 states.
But when it comes to US trade transactions, the entertainment industry is “certainly overlooked,” Sarandos said. “We get thrown under the bus of trade deals from time to time,” he said. “We rarely see a sitting president filmed in a studio lot.”
“We announced Investment of $1 billion In her morning press conference, Sarandos explained in production with the President of Mexico (Claudia Sheinbaum).
The entertainment industry is not currently in the spotlight as well as manufacturing, but Netflix resonates with popular culture. The event’s audience was certainly familiar with the company’s breakaway hit miniseries, “Youth.”
“This is an incredible feat of technical storytelling,” Saldanos said of the show.
Cheryl Estrada
sheryl.estrada@fortune.com
This story was originally introduced Fortune.com