Key Partners
- Talent / studios / creators — originals and licensed titles (FACT letter slate narrative).
- Sports & live — expanded NFL slate; MLB events; boxing; WWE interest (FACT letter).
- Local broadcast — TF1 linear + TF1+ for France members (FACT letter).
- Publishers (Condé Nast, Hearst, People) and iHeartMedia podcasts (FACT letter).
- Open-platform creators (e.g. Danny Go!, Ms. Rachel) (FACT letter).
- Advertisers via Netflix Ads Suite / programmatic (FACT letter).
Key Activities
- Commission, produce, and license series/films globally (FACT letter).
- Personalize discovery; AI search / LLM preference tools (FACT letter).
- Operate Standard with ads / Standard / Premium + extra members (FACT help).
- Sell & serve ads; expand programmatic and live inventory (FACT letter).
- Stage live sports/events; grow cloud games & video podcasts (FACT letter).
- Manage content spend vs amortization (~10% amort. growth outlook 2026 — FACT).
Key Resources
- Content assets, net $33.838B (Jun 30, 2026 — FACT balance sheet).
- Streaming content obligations ~$25.1B total (FACT supplemental).
- Audience approaching 1B people; H1’26 >97B view hours (FACT letter).
- Personalization / LLM search stack (FACT letter product narrative).
- Ads inventory + Netflix Ads Suite / programmatic (FACT letter).
- Cash & equivalents ~$9.1B; Q2 FCF $1.5B (FACT).
Value Propositions
- Standard with ads: $8.99 US — 1080p, 2 devices, short ads (FACT help/ads-plan).
- Standard: $19.99 — ad-free 1080p + 1 extra-member option (FACT).
- Premium: $26.99 — 4K+HDR, 4 streams, spatial audio, up to 2 extras (FACT).
- Global originals + licensed slate; non-English >1/3 of H1 viewing (FACT letter).
- Live sports/events, cloud games, video podcasts expand variety (FACT letter).
- Personalized discovery / AI search (FACT letter).
Customer Relationships
- Self-serve accounts, profiles, and plan changes anytime (FACT help).
- Personalization loops + AI search (FACT letter).
- Household streaming; paid Extra members outside home (FACT help).
- Pricing/trial tests by market (FACT letter monetization section).
- Ads Suite relationships for brands / agencies (FACT letter).
- Help Center support — no invented CSM headcount.
Channels
- Primary — TV / mobile / console / web Netflix apps.
- App stores and device OEM integrations (product FACT).
- netflix.com plans + ads-plan marketing pages (FACT).
- Weekly Top 10 and title marketing moments (FACT letter).
- Ads Suite / programmatic for brand buyers (FACT letter).
- Live events as acquisition spikes (FACT letter sign-up narrative).
Customer Segments
- Standard with ads households ($8.99 US — FACT).
- Standard ad-free households ($19.99 — FACT).
- Premium 4K / multi-screen households ($26.99 — FACT).
- Extra members outside household ($7.99/$9.99 — FACT).
- Kids / games / podcast daypart viewers (FACT letter).
- Brand advertisers (Ads ~$3B 2026 guidance — FACT).
Cost Structure
- Cost of revenues $6.037B in Q2’26 (FACT statements).
- T&D $1.008B; S&M $824M; G&A $499M (Q2’26 FACT).
- Operating income $4.193B; margin 33.4% (FACT).
- Content assets net $33.8B; streaming obligations ~$25.1B (FACT).
- 2026 content amort. growth ~10% outlook (FACT letter).
- No invented per-title budgets or private royalty tables.
Revenue Streams
- Membership revenue — core of $12.560B Q2’26 (+13.4% Y/Y) (FACT).
- US list — Ads $8.99 · Standard $19.99 · Premium $26.99 (FACT help).
- Extra members $7.99 (ads) / $9.99 (ad-free) (FACT help).
- Ads ~$3B 2026 company guidance (FACT letter).
- FY’26 revenue outlook $51.0–$51.4B (FACT guidance).
- Q2 FCF $1.5B; FY FCF outlook ~$12.5B (FACT / guidance).