Netflix shares increased approximately 3% in premarket trading on April 21, 2025 after the company provided its annual revenue forecast.

Co-CEO Greg Peters noted that Netflix has demonstrated resilience during economic downturns.

He reported no significant changes in customer behavior.

The streaming service reaffirmed its 2025 revenue projection of US$43.5 billion to US$44.5 billion.

The company reported that its lower-priced, ad-supported tier constituted 55% of new sign-ups in areas where it is offered.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Netflix’s resilience through recessions is proven, not just promised

Netflix’s current optimism about weathering economic downturns is built on a solid track record of past performance during challenging economic periods.

During the 2008 financial crisis, Netflix was among the few companies that delivered positive returns while most stocks plummeted, as consumers gravitated toward affordable entertainment options 1.

The company’s subscription numbers grew 33% year-over-year during the 2008-2009 recession, reaching approximately 10 million subscribers with a 19% increase in quarterly revenues 2.

This historical resilience helps explain why analysts like Jeffrey Wlodarczak believe Netflix’s current value proposition remains “very attractive” even in potential recession scenarios.

The company’s strategic pricing model, offering entertainment at a fraction of traditional cable costs, has consistently proven appealing to budget-conscious consumers during economic contractions.

2️⃣ The streaming vs. traditional TV power shift accelerates during economic uncertainty

While Netflix projects confidence, traditional media companies are facing significant challenges that economic pressure could exacerbate.

Warner Bros. Discovery recently reported a massive $9 billion write-down in the value of its cable channels and an 11% stock drop after losing NBA broadcasting rights, highlighting the fragility of legacy media business models 3.

Recent Netflix developments