Netflix sees huge profit boost thanks to higher subscription prices

  Netflix's net profit rose 45 percent to $3.125 billion in the second quarter of this year, according to its financial results.

The American group's revenue exceeded its own estimates and market expectations, reaching $11.1 billion, a 16 percent increase year-over-year, according to its earnings release.

Netflix has consistently exceeded market expectations over the past two years, including in the first quarter of 2025, partly due to higher subscription prices.

The company has raised its 2025 revenue forecast, now expecting revenue between $44.8 billion and $45.2 billion, up from a range of $43.5 billion and $44.5 billion.

Netflix explained that these new forecasts "primarily reflect the decline of the dollar against other currencies, as well as strong growth in subscriber numbers and advertising revenue."

eMarketer analyst Paul Verna believes that "investors will be closely watching" the results of Netflix's entry into sports and live TV.

Netflix has partnered with NASA to soon allow users to follow rocket launches and astronauts' movements during their missions.

The platform's subscribers reached more than 300 million last December, after adding 19 million during the holiday season.

However, the company no longer discloses this metric, preferring to focus on audience engagement metrics (time spent watching content).

The platform is counting on a new season of Wednesday and the highly anticipated final season of Stranger Things in the second half of the year.

"We had 44 of our productions receive Emmy nominations this year, which reflects high quality across the board," said Netflix co-CEO Ted Sarandos.

Netflix intends to increase its spending on production and content acquisitions without impacting its operating profit margins.

Viewer engagement is an important indicator of its subscription-based format, whose user base more than doubled in early 2025 compared to the previous year, according to eMarketer.

Netflix expects to generate $9 billion in revenue from this format by 2030.

In an effort to achieve greater engagement, the platform recently tested a generative AI tool that allows subscribers to describe what they want to watch in simple language, such as saying, "I want to watch a show that's scary, but not too scary, and a little funny."