Netflix may be increasingly diving into local content creation, but its horizons remain firmly fixed on the global stage. During Thursday's earnings call, when quizzed about the prevailing economic uncertainties across the globe—a term that, for the lay audience, conjures images of President Trump's tariffs—co-CEO Greg Peters admitted to being "acutely attentive to consumer sentiments and the broader economic shifts." Yet, this awareness does not betray any anxiety on his part or that of his fellow co-CEO, Ted Sarandos.
"We adhere to a myriad of local regulations worldwide, paying our taxes and levies accordingly," Sarandos reassured. "Such economic pressures have always been a part of our landscape, an enduring reality." He continued, "Yet, as we observe the current situation, we see no need to alter our projections."
Peters echoed this sentiment, noting that he and Sarandos find "solace in the fact that entertainment has historically proven remarkably resilient amidst economic downturns." He further emphasized that this resilience is doubly true for Netflix, which Sarandos hailed as "a remarkable value proposition, both intrinsically and competitively."
Not only does Netflix tower over its competitors in size, but it also boasts a near-ubiquitous presence—a macro-level status that subtly underpins its microeconomic prowess.
"We firmly believe that our presence enhances both the local economies and cultures across the globe where we operate, shielding us somewhat from the prevalent uncertainties," asserted Sarandos. This declaration of confidence came on the heels of another financially robust quarter.
Barely an hour prior, Netflix unveiled its first-quarter 2025 results, boasting revenues of $10.5 billion, an operating income of $3.3 billion, and a margin of 31.7 percent—all significantly higher than the previous year and comfortably surpassing Wall Street's projections.
In its quarterly shareholder letter, the streaming giant disclosed that founder Reed Hastings was transitioning into the roles of chairman and executive chairman. This move follows his shift from co-CEO to executive chairman two years ago.
Last week, Trump announced a 90-day halt on most of his planned tariffs, with one notable exception—China. You, China, will face additional tariffs. Trump specified that the tariff reprieve applied only to "non-retaliating countries," whatever that vague term entails. Treasury Secretary Scott Bessent later clarified that, despite the pause, most countries would still be subject to a 10 percent tariff, leaving Trump with less than three months to negotiate with a multitude of nations.
The ramifications for Hollywood remain somewhat uncertain. Advertising could take a significant hit, and physical goods—such as consumer products and physical media that underpin TV and film profits—might also suffer. Concerns linger over the escalating costs of construction materials for major expansions, including Netflix's ambitious project to convert the abandoned Fort Monmouth military base in New Jersey into a sprawling complex of studios and offices. This colossal undertaking involves rehabilitating nearly 500,000 square feet into a dozen soundstages, with construction slated to commence "soon," according to a Netflix spokesperson who spoke to The Hollywood Reporter.
