Netflix says it now has 325 million paid subscribers
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Netflix on Tuesday said it now has over 325 million paid members as it reported fourth-quarter earnings slightly above analyst expectations.
Why it matters: The results come as headlines about the bidding war for Warner Bros. Discovery loom over the stock and the same day as Netflix revised its offer.
Driving the news: Netflix's 325 million paid members number is up from the 300 million it reported in January 2025.
- The streaming giant stopped reporting subscriber figures last year as it focused more on metrics like revenue and profit growth for measuring success.
The big picture: Netflix's agreed deal for WBD's streaming and studio assets will need to clear antitrust review and could hinge on what metric regulators use to determine whether the merger is anticompetitive.
- Netflix could face an uphill battle if regulators evaluate the market based on streaming subscribers.
- Co-CEO Ted Sarandos said during the earnings call Tuesday that Netflix is confident regulators will approve the deal "because this deal is pro-consumer. It is pro-innovation. It's pro-worker. It is pro-creator and it is pro-growth."
Between the lines: Sources previously told Axios that Netflix would likely argue that its platform makes up a small fraction of overall TV watch time, and is smaller than YouTube, for example.
- It could also argue that it has a large overlap with HBO Max's subscriber base.
Catch up quick: Netflix amended its bid for the assets earlier Tuesday, making it an all-cash offer at the same price of $27.75 per WBD share.
- It originally agreed to a cash-and-stock deal with WBD in December.
- Paramount's all-cash bid — for all of WBD, not just its studio and streaming assets — valued the company at $30 per share.
- WBD cited risks associated with the financing structure of Paramount's bid for rejecting Paramount's solicited and hostile offers.
Zoom out: For weeks, WBD has reiterated its support for a Netflix deal despite numerous hostile bids and legal threats from Paramount Skydance.
- Now, it appears Netflix is willing to bid against itself to remain competitive as the deal progresses, Axios' Dan Primack notes.
What they're saying: Netflix reiterated it views the Warner Bros. deal as an investment in content.
- On the earnings call, co-CEO Greg Peters said that while Netflix is optimistic about its organic growth prospects, "we also see Warner Bros. — with 100 years of IP, an incredible library, great new shows and films — that's an accelerant to our strategy and it's another mechanism to improve our offering for our members."
- Sarandos emphasized that Netflix's "default position" going into deal discussions was that "we were not buyers."
- "We went into this with our eyes open and our minds open, and when we got into it we both got very excited about this amazing opportunity," he said.
On Tuesday afternoon, Netflix reported earnings of 56 cents per share on $12.05 billion in revenue for the fourth quarter.
- That's slightly better than the earnings per share of 55 cents on $11.97 billion in revenue, according to analyst estimates cited by CNBC.
- For the first quarter of 2026, Netflix forecast earnings of 76 cents per share on $12.16 billion in revenue.
What to watch: Netflix said its 2026 priorities include growing its ad business, live events, new content categories like video podcasts and closing its deal to acquire Warner Bros.
