Ano Kaisha no Shikumi
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Netflix

Netflix, Inc.

Company highlights

A company that raised prices 8 times and still gained members.

Vol.4, Chapter 2 (as of 2026-08-22)

Key figures

Period to 2025-12-31ConsolidatedU.S. GAAP

RevenueDisclosed US$45.2B
Operating marginCalculated 29.5%
Net assets to total assetsCalculated 47.9%

Business revenue model

Featured in

Vol.4, Chapter 2 (as of 2026-08-22)

“Kaisha no Shikumi: Subscriptions”, Chapter 2: Netflix: Eight Price Increases in Twelve Years, and 300 Million Paying Members

Book’s reference date 2026-08-22 / data last checked 2026-10-20

Key points in this volumeA subscription business's profits cannot be judged by member count alone.

The standard plan in the United States went up 8 times between 2014 and 2026. Year-end membership still rose above the previous year in every year that can be confirmed, through FY2024.

What it costs to make a title does not change with the number of members. The more members there are, the lower the production cost per member. A business shape in which price rises work shows up in that cost structure.

Figures from the book

What it costs to make a title does not change with the number of members, so the burden per member falls as members grow
The shape of Netflix's costs (figure from Chapter 2 of “Kaisha no Shikumi: Subscriptions”, in Japanese)

The move that changed Netflix

It added a cheap ad-supported plan and extended charging for shared accounts to more than 100 countries.

In the first half of 2022 Netflix lost paid memberships in two quarters running, a net loss of 1.17 million. The company did two things. In November 2022 it added a cheap ad-supported plan, and in May 2023 it extended charging for shared accounts to more than 100 countries. The first was a plan at a lower monthly price; the second was a charge on people who had not been paying. In the quarter right after paid sharing was extended there was a net gain of 5.89 million, and memberships went from 230.74 million at the end of 2022 to 301.62 million at the end of 2024. Revenue went from $31.6 billion to $39.0 billion, and operating profit from $5.6 billion to $10.4 billion.

Coverage in the book

  • Year-End Memberships Kept Rising Through FY2024, the Last Year That Can Be Checked
  • The Monthly Fee Is Almost the Whole of Revenue
  • Content Amortization Is 70.6% of the Cost of Revenues
  • In 2022, Memberships Fell in Two Quarters Running
  • Eight Increases in Twelve Years

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Cover of “Kaisha no Shikumi: Subscriptions” “Kaisha no Shikumi: Subscriptions” Chapter 2: Netflix “Netflix: Eight Price Increases in Twelve Years, and 300 Million Paying Members” “Ano Kaisha no Shikumi” series, Vol.4 — Kindle and paperback Find it on Amazon →
noteネットフリックスは12年で8回値上げした　それでも会員は3億人を超えた (Japanese) 2026-09-17 Video12年で8回値上げしたネットフリックス　決算で学ぶ「固定費の割り勘」の読み方 (Japanese) 2026-09-20

Company profile

No securities code (not listed) / Information and Communication

Tables scroll sideways

Disclosed data

Source: Annual Securities Report ( to 2025-12-31)

Profitability ★★★★★position among all companies 29.5%
Growth (revenue, 4-year average) ★★★★☆position among all companies 11.1%
Capital efficiency ★★★★★position among all companies 41.3%

Business activities and revenue composition

Breakdown by business: not published

Revenue and profit

Performance, financial position and capital allocation

Finance
47.9% Net assets to total assets FY ending 12/2025 · consolidated / calculated
Capital allocation
76.1% Cash conversion FY ending 12/2025 · consolidated / calculated

Netflix

Recent performance trends

Source Annual securities reports

45 30 15 0 4 years ago 3 years ago 2 years ago Last year This year Net sales and operating revenue ¥ billion
Consolidated indicators (6 items)
Item4 years ago3 years ago2 years agoLast yearThis year
Net sales US$29.7 billion US$31.6 billion US$33.7 billion US$39.0 billion US$45.2 billion
Operating income US$6.2 billion US$5.6 billion US$7.0 billion US$10.4 billion US$13.3 billion
Net income US$5.1 billion US$4.5 billion US$5.4 billion US$8.7 billion US$11.0 billion
Net cash provided by (used in) operating activities US$0.4 billion US$2.0 billion US$7.3 billion US$7.4 billion US$10.1 billion
Total assets US$44.6 billion US$48.6 billion US$48.7 billion US$53.6 billion US$55.6 billion
Net assets US$15.8 billion US$20.8 billion US$20.6 billion US$24.7 billion US$26.6 billion

Revenue scale in the same industry

Companies in the same industry with disclosed revenue: 2 (no comparison)

Sources and methodology

Basic indicators
ItemValueConsolidated / Non-consolidatedSource
Net sales US$45.2 billion Disclosed
Operating income US$13.3 billion Disclosed
Net income US$11.0 billion Disclosed
Net cash provided by (used in) operating activities US$10.1 billion Disclosed
Total assets US$55.6 billion Disclosed
Net assets US$26.6 billion Disclosed
Operating margin 29.5%ConsolidatedCalculated
Net assets to total assets 47.9%ConsolidatedCalculated
Net margin 24.3%ConsolidatedCalculated
Return on equity 41.3%ConsolidatedCalculated
How to read the figures, and caveats

Terms

  • Consolidated: the parent company together with the subsidiaries it consolidates
  • Parent-only: the single company that filed the annual securities report
  • Calculated: a disclosed figure put through the formula shown
  • Not disclosed: no such value in the filing (not treated as zero)
  • Not retrieved: a value this page could not extract, including values in the filing that could not be matched. The same item may appear in another table
  • Segment: a business division the company uses in its disclosures
  • Industry median: the middle value among companies in the same industry that disclose the item
  • ★: position when every company is lined up by value (not a judgement of the company)See the formulas
  • Source: document name, period covered, filing date and where it was obtained
  • Tables scroll sideways

Key figures

  • Operating margin 29.5%　Operating income ÷ revenue 　＝ US$13.3 billion ÷ US$45.2 billion
    The denominator is revenue under U.S. GAAP (consolidated, U.S. GAAP).
  • Net assets to total assets 47.9%　Stockholders' equity ÷ total assets 　＝ US$26.6 billion ÷ US$55.6 billion
    Calculated here from stockholders' equity and total assets (no equity-to-asset ratio disclosed by U.S. companies; the Japanese field is the company's own disclosed value)
  • Net margin 24.3%　Net income ÷ revenue 　＝ US$11.0 billion ÷ US$45.2 billion
  • Return on equity 41.3%　Net income ÷ stockholders' equity 　＝ US$11.0 billion ÷ US$26.6 billion
    Calculated here (not a value the company disclosed)

Business activities and revenue composition

  • Breakdown by business: machine transcription of segment information (business divisions used in disclosures) in the annual securities report. No table where segment sales differ from the disclosed total by more than 1%, or where the company reports a single business

Finance

  • Net assets to total assets　Net assets ÷ total assets

Capital allocation

  • ★: position when all companies are sorted by value and cut into fifths (a position, not a rating). The five items with ★: only where both numerator and denominator are available on a consolidated basisSee the formulas
  • Cash conversion　Net cash provided by (used in) operating activities ÷ operating income

Data sources and calculation methods

Primary source: the annual securities report of Netflix, Inc. on EDINET, the FSA’s disclosure system (free to read)
Corporate number: / Accounting standard: U.S. GAAP

  • Amounts: machine transcription of EDINET XBRL (no manual re-keying). Long narrative notes are text and not in the account list. Identifiers: machine transcription of the EDINET code list (retrieved 2026-08-22)
  • ★: position of the value calculated from disclosed figures among the 4,240 companies on this site, on a five-step scale. Not a judgement of the company. No forecasts usedThe formulas and how they are counted
  • No rank: net assets as a share of total assets, cash conversion and revenue per employee (size alone does not show quality). Industry median shown for comparison. Cash conversion of 100%: operating cash flow equal to operating profit
  • Profit-and-loss chart: only where “sales − cost of sales − SG&A = operating income” holds between disclosed values. Cost breakdown: the six largest SG&A items
  • Trend charts: key financial indicators of the annual securities report. Amounts in billions of yen (dividend per share in yen). Long-run chart joins reports filed in different years (newer report for overlapping years). Some items stop part-way after a change of accounting standard. A stock split changes the weight of one share. Consolidated and parent-only in separate tables
  • Revenue scale in the same industry: bars of revenue (disclosed values) of companies in the same industry grouping as the industry pages, largest first. Only the top three and the two companies either side of this one. Each company’s latest fiscal year. An order of size, not a ranking of quality or an investment view
  • Share prices: not published (no data source allows redistribution). No share-price-based indicators (such as the price earnings ratio) and no extension of past growth into the future
  • Average age, average length of service and average annual salary: the reporting company alone (the parent). At a holding company, a small head-office staff. Payout ratio (basic facts): dividend per share ÷ consolidated earnings per share, calculated here (the payout ratio in the annual securities report is the reporting company’s figure, on a different basis). Representative and founding date: gBizINFO (Ministry of Economy, Trade and Industry), some companies only
  • “Retrieved disclosed figures”: every value readable as a number from the annual securities report. Company-wide values only (no segment or other breakdowns)
  • Segment table: machine transcription of the segment information in the annual securities report. Business names as labelled by the company in its XBRL. No table where segment sales differ from the disclosed total by more than 1%. Adjustments, corporate, eliminations and “other” left out of the table and the share denominator, as they are not businesses
  • Breakdowns of amounts, not diagrams of how the business works. Who pays whom, and for what, is not in the disclosed figures; no lines drawn from guesswork
  • No reproduction of the book’s content. Figures from the same filings; text written separately