The largest streaming service, running on the clock of subscriptions, content and competition, with infrastructure entirely on AWS
Netflix
Netflix is the world's largest streaming service with 325 million paid memberships. Most revenue comes from subscriptions, and the advertising tier introduced in 2022 has become a new growth axis. It runs compute and storage entirely on AWS with no data centers of its own (only video delivery uses its own Open Connect CDN), and its results turn on subscriptions, content investment and competition. FY2025 revenue was $45.2B, up 16%.
NFLX Updated Jul 12, 2026 4 AI consumers· 2 recurring
Per the valuechain.wiki graph, Netflix is directly linked to 1 companies (1 supply, 0 revenue relationships) and reaches 36 companies within two hops; the links are backed by 3 dated sources, 1 of them primary filings (as of 2026-07-12).
Financials & Segments
- Total revenue · $45.2B (FY2025 revenue, +16%)
- Customer concentration · Tied to end consumers (subscriptions). Advertising is growing fast but subscriptions remain the bulk of revenue
- Segments · Subscription memberships · Advertising and non-membership
Revenue from
- 구독 소비자 (멤버십) High confidence· Amount $45.2B · FY2025 · total revenue (mostly subscription)
Paid subscription memberships are the bulk of revenue. FY2025 revenue was $45.2B (+16%) with 325 million+ paid members, tied to discretionary spending and subscription retention. - 광고주 (광고형 요금제) High confidence· Amount $1.5B · FY2025 · advertising revenue (2025, up 2.5x)
The ad tier launched in 2022 is a new growth axis. 2025 ad revenue exceeded $1.5B, more than doubling year over year, with over half of new sign-ups choosing the ad-supported plan.
Pays to
- 콘텐츠 제작·라이선스 (상각) High confidence
Content production and licensing amortization is the largest cost. The main driver of the FY2025 rise in cost of revenues was content amortization, and Netflix keeps raising content investment as it expands originals. - Amazon (AWS) High confidence
Netflix runs compute, storage and infrastructure entirely on Amazon Web Services (AWS) with no data centers of its own, using only its Open Connect CDN for video delivery. This cloud cost touches the AI infrastructure chain, but the direction is consumption (streaming).
Value-chain ripple (2 tiers)
Following node-to-node links up to 2 tiers; each firm is shown once, at its nearest tier.
| Company | Chain | '21 | '22 | '23 | '24 | '25 | YTD |
|---|---|---|---|---|---|---|---|
| Netflix | node | +11.4 | -51.1 | +65.1 | +83.1 | +5.2 | -21.7 |
| Amazon | benef1 | +2.4 | -49.6 | +80.9 | +44.4 | +5.2 | +6.3 |
| SanDisk | benef2 | · | · | · | · | · | +707.1 |
| Seagate Technology | benef2 | +87.5 | -51.4 | +69.1 | +4.1 | +225.3 | +231.4 |
| Marvell | benef2 | +84.6 | -57.5 | +63.7 | +83.8 | -22.8 | +177.8 |
| Astera Labs | benef2 | · | · | · | · | +25.6 | +148.2 |
| Corning | benef2 | +5.9 | -11.6 | -1.2 | +60.6 | +87.8 | +118.8 |
| Ciena | benef2 | +45.6 | -33.8 | -11.7 | +88.4 | +175.8 | +97 |
| Credo Technology | benef2 | · | · | +46.3 | +245.2 | +114.1 | +79.2 |
| GE Vernova | benef2 | · | · | · | · | +99 | +67.3 |
| Caterpillar | benef2 | +16 | +18.6 | +25.9 | +24.7 | +60.3 | +67 |
| Wiwynn | benef2 | +24.7 | -22.3 | +206.4 | +3.5 | +64.4 | +45.1 |
| Jabil | benef2 | +66.4 | -2.5 | +87.4 | +13.3 | +58.7 | +44.9 |
| Arista Networks | benef2 | +97.9 | -15.6 | +94.1 | +87.7 | +18.5 | +42.7 |
| Alchip Technologies | benef2 | +14.3 | -8.7 | +365.1 | -18.9 | +0.8 | +34.7 |
| Quanta Computer | benef2 | +22.2 | -12.8 | +254.5 | +12.7 | +8.9 | +33.4 |
| Cummins | benef2 | -1.7 | +14.1 | +1.7 | +48.9 | +49.4 | +33.3 |
| Globalstar | benef2 | +241.2 | +14.7 | +45.9 | +6.7 | +96.6 | +31.2 |
| Eaton | benef2 | +46.7 | -7.2 | +56.2 | +39.5 | -2.8 | +28.6 |
| ABB | benef2 | +23.9 | +7.3 | +18.9 | +39 | +36.1 | +27.2 |
| Celestica | benef2 | +37.9 | +1.3 | +159.8 | +215.2 | +220.3 | +21.7 |
| Digital Realty | benef2 | +30.7 | -41 | +39.9 | +35.9 | -10.1 | +18.2 |
| Schneider Electric | benef2 | +25.9 | +1.6 | +25.8 | +36.1 | +0.5 | +13 |
| Foxconn (Hon Hai) | benef2 | -5.1 | +2.8 | +7.8 | +80.1 | +26.9 | +10.9 |
| Exelon | benef2 | +41.5 | +8.3 | -14 | +9.2 | +20 | +9.3 |
| Procter & Gamble | benef2 | +20.5 | -5 | -0.9 | +17.3 | -12.3 | +4.1 |
| Fabrinet | benef2 | +52.7 | +8.2 | +48.4 | +15.5 | +107.1 | +3.5 |
| Talen Energy | benef2 | · | · | · | +214.8 | +86.1 | +2.9 |
| Vistra | benef2 | +19.6 | +5.1 | +70.7 | +261.5 | +17.7 | -1.3 |
| IonQ | benef2 | · | -79.3 | +259.1 | +237.1 | +7.4 | -4.5 |
| Amorepacific | benef2 | -30.1 | -5.7 | -18.4 | +9.9 | +8.2 | -10.5 |
| Quantum Computing Inc | benef2 | -75.8 | -55.7 | -39.5 | +1712.7 | -38 | -15.6 |
| D-Wave Quantum | benef2 | · | -85.3 | -38.9 | +854.5 | +211.3 | -23.2 |
| Nike | benef2 | +18.7 | -29 | -6 | -29.1 | -13.8 | -29.3 |
YTD as of 2026-07-10 · source: Yahoo Finance
Netflix's thesis is 'a mature growth stock bolting a second engine — advertising — onto subscription dominance.' Subscriptions from 325 million paid members carry most revenue (FY2025 $45.2B, +16%), and the 2022 ad tier (ad revenue $1.5B+, over half of new sign-ups choosing the ad plan) is a new axis to lift ARPU. The core cost is content amortization, and results turn on the clock of original investment, subscriber retention and competition. Infrastructure runs entirely on AWS with no data centers of its own (only delivery via Open Connect), touching the AI chain but pointed at consumption. The -20% give-back in 2026 is a correction of high-valuation and competition worries; what to watch is the scaling of ad revenue and content efficiency.
Analysis generated from returns as of 2026-07-09Analyst ratings
Consensus: Buy 2 · Hold 1 · Sell 1 · Avg. target $113 · Price $73.37 (07-10) · Upside +54%
| Broker | Rating | Target | Published | |
|---|---|---|---|---|
| Goldman Sachs · Eric Sheridan | Underweight | — | Jun 18, 2026 | Report ↗ |
| Citigroup · Jason Bazinet | Market Perform | — | Jun 18, 2026 | Report ↗ |
| MoffettNathanson | Buy | $115 | Jun 17, 2026 | Report ↗ |
| Jefferies | Buy | $110 | Jun 10, 2026 | Report ↗ |
Downgraded from Neutral to Underweight on competition and valuation concerns.
Analyses covering this node
- Turn your assets into AI infrastructure and your clock changes: miners and telcos Jul 9, 2026
- Consumption does not run on one clock: staples, discretionary, luxury diverge Jul 5, 2026
- AI money stays inside the chain: consumption and capital run on other clocks Jul 5, 2026