Netflix Is “Paying Close Attention” to Tariffs Talk, But Believes It’s “Less Exposed” Than Others

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Netflix may be doing more programming locally, but it is definitely still thinking globally.

During a recent earnings conference call on Thursday, Netflix co-CEO Greg Peters admitted that he’s closely watching both consumer attitudes and the overall direction of the global economy, particularly in relation to President Trump’s tariffs.

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On a Thursday earnings call, Netflix co-CEO Greg Peters openly stated that he is keeping a close eye on consumer sentiments and the broader economic trends, especially those influenced by President Trump’s tariffs.

Not that he and his fellow co-CEO Ted Sarandos are worried.

Ted Sarandos stated that we continually comply with various tax and levy rules worldwide, given local regulations. This has been ongoing practice. However, he emphasized that despite the current changes, our financial projections remain unaltered.”

Or, more colloquially:

“As far as taxes go, we’ve always played by different rules depending on where we operate. Today, there are some new twists, but the bottom line is, our future plans stay the same.

Peters expressed a sense of reassurance, stating that historically, entertainment has shown strong resilience during challenging economic periods. This sentiment is even more applicable to Netflix, according to him, with Ted Sarandos describing it as an exceptional value not just in relative terms but also in comparison to competitors.

Netflix not only outshines its rivals in size, but it’s also available virtually everywhere, which translates into an advantage at the individual market level as well (macro to micro economics).

As a global contributor, I firmly believe that I enrich the local economies and cultures wherever I’m present. This unique position may provide me with a slightly reduced vulnerability compared to others. -Said by Me (as a fan).

The expressions of confidence followed another quarter of strong financial performance.

In simple terms, Netflix recently announced its first quarter earnings for the year 2025, showing a revenue of approximately $10.5 billion, an operating income of $3.3 billion, and a profit margin of 31.7%. All these figures represent significant growth compared to the previous year, and they surpassed the expectations set by financial analysts on Wall Street.

In its latest shareholder update, the streaming service announced that Founder Reed Hastings will take on the roles of both Chairman and Executive Chairman. Hastings transitioned from being a co-CEO into an Executive Chairman position about two years prior.

A week ago, Trump declared a temporary halt on most of his proposed tariffs, but this exemption does not apply to China, who will face even higher tariffs. Trump clarified that the pause applies only to “non-retaliating countries,” which is unclear. Later, Treasury Secretary Steven Mnuchin clarified further that during this pause, most countries would still be subject to a 10% tariff, giving Trump approximately three months to engage in trade negotiations with numerous nations.

The potential impact on Hollywood isn’t entirely certain, but there are several areas of concern. For instance, advertising might experience significant declines, and merchandise sales could also suffer. Additionally, there are worries about the expenses associated with building materials for large-scale projects, such as Netflix’s ambitious plan to transform the closed Fort Monmouth military base in New Jersey into studios and offices. This project involves renovating approximately 500,000 square feet into a dozen soundstages, and construction is slated to commence shortly, according to a representative from Netflix for this project speaking to The Hollywood Reporter.

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2025-04-18 00:54