Netflix (NFLX, Financials) is setting an ambitious goal to double its revenue and triple its operating profit over the next five years as it works toward reaching a $1 trillion market value.
The streaming giant is betting that growth in both subscriptions and advertising will help it get there. Netflix aims to build its ad business to $9 billion a year by 2030, adding a second major revenue stream alongside its core paid memberships. If successful, Netflix would join Apple (AAPL, Financials) and Microsoft (MSFT, Financials) among the few companies that have crossed the trillion-dollar mark.
Executives outlined the plan earlier this year, shortly after co-CEOs Greg Peters and Ted Sarandos attended events tied to the entertainment industry’s biggest night, the Oscars. Despite broader economic uncertainty and fears of a potential recession, leadership and investors are expressing confidence in the company’s long-term outlook.
At the start of April, Netflix’s market value was around $260 billion, leaving a significant gap to close. The company is counting on international expansion, a stronger content lineup, and growth in its ad-supported plans to drive the next phase of its business.
While Netflix faces tough competition from Disney+, Amazon Prime Video and others, it is betting that a more diversified business model will help it weather economic pressures and stay on track toward its $1 trillion goal.
