Inside Netflix: The Bold Business & Tech Strategy Behind Its Rise

Ever scroll through your app list looking for something that actually sticks? 

There are millions of apps designed to make our lives easier, some spark for a minute, others fade fast. That’s because today’s audience has limited time and countless choices. If your work doesn’t grab attention, it risks being lost forever in the black hole of blandness—rightly so. Then there’s Netflix: the one app that didn’t just last, it rewrote the rules on how we relax, connect, and binge. But what’s powering all that endless scrolling and “just one more episode” energy? In this blog, we look beyond the binge to explore the business engine powering Netflix from its data-driven content bets to the tech that personalises every scroll and explore how it became a binge-worthy app to a billion-dollar business model.

How Netflix Transformed Its Business Model Over Time

Netflix didn’t start as the streaming app we know today. Back in 1997, it was just a DVD-by-mail service. But everything changed in 2007 when it launched online streaming, a bold move that completely changed how we watch shows and movies. By 2020, Netflix had over 201 million subscribers, making it the most popular subscription video-on-demand service worldwide.

After amplifying its subscription model, Netflix started investing in licensed content. This move allowed the platform to offer a wide range of movies and TV shows to its subscribers. However, Netflix soon realised that relying solely on licensed content was not sustainable in the long run, so it shifted focus to edging out competition through original content. 

One major factor that sets Netflix apart from its competitors is the success of its original content series like House of Cards, Stranger Things, and Bridgerton,  which create a global fanbase. By 2023, Netflix originals had earned 103 Emmy nominations, nearly double from seven years prior. This creative focus helped power the platform to $39 billion in revenue by 2024, proving that when vision meets timing, fortune truly favours the bold.

How Netflix Makes Money Today

With over 300 million subscribers worldwide, Netflix has turned streaming into a powerful business engine. But its success isn’t just about offering content, it’s about building a platform people return to day after day. From AI-powered recommendations to global originals and new ad-supported plans, every move is designed to keep users engaged and revenue flowing. Here’s how Netflix turns your attention into long-term growth.

Subscription-First Strategy

When it comes to making money, Netflix keeps it simple. The platform centres around a subscription model. Based on the plans, users pay a monthly fee for unlimited access to its massive content library, including movies, TV shows, and its own original content. This approach has paid off literally. By 2025, Netflix crossed a staggering 301.6 million subscribers worldwide. That kind of scale doesn’t just speak to popularity; it highlights how recurring revenue, built on global demand, powers Netflix’s growth.

Understanding Netflix means understanding a platform that reaches hundreds of millions of subscribers worldwide, surpassing 301.6 million subscribers as of 2025, solidifying its position as a dominant player in the global market.

Here is the Netflix subscriber count over the years

Source: Netflix Investor Relations Letter, Statista

Global Reach

With millions of subscribers worldwide, Netflix understands that one size doesn’t fit all. The platform offers localised content in multiple languages to cater to diverse audiences, from Korean dramas to Spanish thrillers. With over 101.13 million subscribers from Europe, the Middle East, and Africa (EMEA), the region is the biggest Netflix market globally.

Source: Statista

Netflix's own original content 

The bold decision of Netflix to create its own original content was a smart and calculated move. Shows like House of Cards, Stranger Things, The Crown, Squid Game, and Bridgerton won the hearts of subscribers around the world. In Q4 2024, Netflix’s supply share of global streaming originals reached 24.9%, the highest share since early 2022, but Netflix didn't stop there. What makes Netflix stand out is producing content in global languages and regions, from La Casa de Papel in Spain and Sacred Games in India.

Data-Driven Decisions

Behind the binge-worthy content is a powerful engine: data analytics. Netflix tracks what users watch, skip, rewatch, and pause to understand what keeps them hooked. This data shapes everything from what content gets produced to how it's promoted. Netflix shares a bi-annual report covering 99% of what people watch. This helps them learn what viewers love, so they can create better content and keep people coming back.

Personalised User Experience

Ever wondered how Netflix always knows what you want to watch next? Its recommendation engine is fueled by AI and user behaviour data, which enables it to create personalised recommendations for its users, based on their viewing history and preferences. More than 80 per cent of the TV shows people watch on Netflix are discovered through the platform’s recommendation system. This hyper-personalised touch is one of Netflix’s biggest competitive advantages.  It keeps users engaged longer and turns them from casual viewers to loyal subscribers.

And the results speak for themselves; improved personalisation led to a 65% quarter-over-quarter growth in ad-tier memberships by Q1 2024, showing just how powerful tailored experiences are in driving user adoption and engagement.

Retention Over Acquisition

Netflix focuses heavily on keeping users, not just gaining them. By offering fresh, personalised content and a seamless user experience, it ensures that subscribers stick around month after month.

Netflix has consistently held on to its subscribers across major regions. The Asia-Pacific (APAC) market played a key role, delivering the second-highest average quarterly net subscriber additions over the past five quarters. In Q3 2024, Netflix’s churn rate dropped to a record low of 2.17%,  significantly better than Prime Video’s 3.7%, showing just how really strong its user loyalty.

Balancing Licensed Hits and Original Stories

Netflix keeps its content library strong by mixing the best of both worlds: licensed shows and in-house originals. It partners with major studios to bring in popular titles that audiences already love, while also pouring billions into creating its own exclusive series and films.

This strategy not only keeps the content lineup fresh and diverse, but it also helps Netflix stand out in a crowded streaming space. From global favourites to local-language originals, the platform offers something for everyone.

Why it works:

• Builds a strong content mix through licensing deals
• Invests big in exclusive original productions
• Creates a competitive edge with unique, must-watch content

In-House Ad Tech & Password Crackdown

Netflix is leaning into two big plays its own in-house ad tech and a firm crackdown on password sharing. The ad-supported tier helps bring in price-sensitive users, while the password rules convert freeloaders into paying subscribers.

And this shift aligns with a bigger trend, as according to Nielsen’s Q1 2025 report, 72.4% of total TV viewing now includes ads. In other words, Netflix is right where the future of streaming is heading.

Source: Nielso: The Add Supported Gauge Report 

Success is built on Data-Driven Decisions

Revenue Powerhouse: Netflix generated $39 billion in revenue in 2024, a 15.7% increase from the previous year, showcasing its strong financial growth backed by strategic planning.

Global Reach: The platform reached  277.6 million subscribers worldwide.

• North America (U.S. + Canada): 84.1 million
• Europe & Middle East: 93.9 million

Content Investment: Netflix spent $16 billion on content in 2024 and more than $3 billion in 2023, continuing its aggressive push for original, high-performing series and films.

Profit Surge: The company posted a net income of $8.7 billion in 2024, a 61% increase year over year.

Watch-Time Domination (U.S.): Netflix accounted for 18.3% of total streaming minutes watched in the U.S., outperforming other streaming platforms.

Content Library Depth: The U.S. library alone boasts:

• 3,800+ movies
• 1,800+ TV shows

Smart Use of Viewer Data: Personalised recommendations, content greenlighting, and regional content strategies are all guided by viewer analytics, turning insights into action.  80% of the content watched on Netflix is driven by personalised recommendations.

From Inspiration to Execution:

Netflix’s rise didn’t happen overnight; it’s the result of smart decisions and a deep understanding of user behaviour. From building tech that scales to creating content and connecting globally, Netflix has rewritten the rules of entertainment.

At Tech Essentia, we help businesses take those same principles and turn them into real platforms. Whether you're dreaming up the next Netflix or building a niche streaming service, we bring the technology, strategy, and support to make it happen.