Netflix surpassed 325 million subscribers worldwide by the end of 2025, prompting the streaming giant to announce plans to increase content spending by 10% to $20 billion in 2026. The company's subscriber growth, up from 301.2 million the previous year, fueled optimism about future expansion, including a potential acquisition of Warner Bros.

The company's fourth-quarter 2025 results exceeded Wall Street expectations. Netflix reported revenue of $12.05 billion, a 17.6% increase year-over-year, and net income of $2.41 billion, a 29.4% jump, translating to earnings per share of 56 cents. Analysts had projected revenue of $11.97 billion and earnings per share of 55 cents. Netflix also reported ad revenue exceeding $1.5 billion in 2025.

The subscriber milestone and increased content budget signal Netflix's continued dominance in the streaming market. The proposed increase in content spending is aimed at maintaining its competitive edge against rivals like Disney+ and Amazon Prime Video, all vying for market share in a saturated landscape. The potential acquisition of Warner Bros. would further solidify Netflix's position, creating a media powerhouse with an extensive library of content.

Netflix's success is rooted in its early adoption of the streaming model and its aggressive investment in original content. However, the company faces challenges, including increased competition and the rising costs of content production. CNN projects Netflix's profit this year at 600 million, down from 1 billion in 2016.

Looking ahead, Netflix's ability to sustain subscriber growth and manage content costs will be crucial. The planned increase in content spending, coupled with the potential acquisition of Warner Bros., suggests a strategy focused on scale and diversification. The company's performance in 2026 will be a key indicator of its long-term viability in the evolving streaming landscape.