Netflix Eyes Growth, Denies $1 Trillion Goal by 2030
The company's co-chiefs are prioritizing operating plans and financial performance, with a focus on becoming the most valued entertainment company, as they work to achieve their long-term goals and build on their existing success in the industry, including their popular streaming service.
Netflix co-chiefs Ted Sarandos and Greg Peters have downplayed a report that the company aims to reach a $1 trillion market capitalization by 2030, stating it was just a long-term aspiration and not a forecast. The company's focus remains on its operating plans, which remain unchanged despite the reported goal.
In their first quarterly earnings report, Netflix focused on revenue and operating income, without disclosing subscriber numbers, as it seeks to control the narrative around its growth potential. This approach is seen as an attempt to shift the focus from subscriber growth to the company's overall financial performance. Ted Sarandos, Netflix co-CEO, denied reports that the company is projecting to double its revenue to $1 trillion by 2030, citing a Wall Street Journal report.
Sarandos described the numbers as internal discussions, not official projections, and stated that the company has a culture of avoiding leaks. He emphasized that the company is engaged in long-term thinking and working to become the most valued entertainment company. The report also disclosed that Sarandos and co-CEO Reed Hastings earned $61.9 million and $60.2 million in total compensation in 2024, respectively.
As Netflix continues to navigate the evolving entertainment landscape, its leadership remains committed to driving growth and innovation. While the company's aspirations may be ambitious, its focus on long-term success and financial performance is likely to shape its strategy in the years to come.