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Netflix co-CEO Gregory Peters isn’t concerned about the on-demand streaming service despite growing concerns about the economy, saying that the entertainment industry has proven to be “resilient” in tough periods.
“We also take some comfort in the fact that entertainment historically has been pretty resilient in tougher economic times,” Peters said in the company’s first-quarter earnings report. He added that “Netflix specifically also has been generally quite resilient, and we haven’t seen any major impacts during those tougher times, albeit, of course, over a much shorter history.”
This comes as analysts question whether President Donald Trump’s tariffs could push the U.S. into a recession, forcing consumers to reconsider their spending on streaming services.
“We also take some comfort in the fact that entertainment historically has been pretty resilient in tougher economic times,” Netflix co-CEO Gregory Peters said. (Courtesy of Comcast / Fox News)
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However, Peters said the company’s low-cost ad plan, starting at $7.99, that is available in its largest markets “also gives us more resilience.”
Netflix’s lower-priced, ad-supported tier, which launched in late 2022, has proven to be popular among consumers, as it accounts for 55% of its new sign-ups in countries where it is available.
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Peters said the company has been paying close attention to “consumer sentiment and where the broader economy is moving” but there isn’t anything significant to note.
Ticker Security Last Change Change % NFLX NETFLIX INC. 973.03 +11.40
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During the three-month period ending in March, Peters said that customer retention has been “stable and strong.”
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He also added that the company’s most recent price changes have been in line with expectations and that “engagement remains strong and healthy.”
Netflix exceeded Wall Street expectations for quarterly results and offered a bullish revenue outlook on Thursday, signaling confidence amid the economic uncertainty.
Netflix reported revenue of $10.54 billion for the first quarter, edging past analysts’ estimates of $10.52 billion, according to data compiled by LSEG.
Diluted per-share earnings of $6.61 exceeded consensus estimates of $5.71. The company released hits such as the limited series “Adolescence,” drama thriller “Zero Day” and the unscripted series “Temptation Island” during the quarter.
The company projected revenue would rise to $11.04 billion for April through June, above the analyst consensus of $10.90 billion, “driven primarily by membership growth and higher pricing.”
Netflix reported revenue of $10.54 billion for the first quarter. (Nikos Pekiaridis/NurPhoto via Getty Images / Getty Images)
Netflix has more than 300 million global subscribers. In January, the company reported it had added a record 18.9 million subscribers in the fourth quarter of 2024.
Reuters contributed to this report.
