Can investing in Netflix Stock potentially make one wealthy?
In a world where streaming services have become an integral part of daily life, Netflix continues to stand out as a global powerhouse. With a presence in over 190 countries and more than 300 million members, the company has shown significant growth prospects, particularly in less-developed international markets.
The Asia-Pacific (APAC) and Latin America regions are key areas of focus for Netflix, contributing substantially to its overall net subscriber additions. In 2024, over 40 million net subscribers were added, the majority of which came from these regions. Analysts project that this trend will continue, with the extension of Netflix's ad-supported video on demand (AVOD) tier and a focus on local market dynamics.
Netflix's AVOD tier has been a significant driver of growth in emerging markets, particularly where price sensitivity is high. As of early 2025, the ad-supported plan boasted 94 million monthly active users, and revenue from this tier doubled in 2024, with expectations for another doubling in 2025.
The company's revenue is forecasted to grow by 12-16% in 2025, reaching approximately $44 billion, with a significant contribution from international markets. Strategic pricing for premium tiers alongside the ad-supported plan boosts average revenue per user (ARPU), allowing Netflix to grow profitability while expanding its subscriber base in these regions.
To cater to diverse tastes in Asia and Latin America, Netflix continues to invest heavily in local original content, which is crucial for attracting and retaining subscribers in these culturally distinct regions. This localized approach enhances Netflix’s competitive edge against domestic and regional streaming services.
While competition and economic headwinds pose challenges, Netflix’s strong financial health (gross margin ~47%, return on equity ~41% as of 2024) and flexible business model position it well to capitalize on the growing broadband penetration and rising demand for streaming services in emerging markets.
In summary, Netflix’s growth prospects in less-developed international markets like Asia-Pacific and Latin America remain robust. Driven by localized content, the ad-supported business model, and strategic price differentiation, these factors are expected to fuel sustained subscriber growth and profitability in these regions over the next several years.
It's worth noting that investors should not put all their hope in a single business. Building wealth in the stock market requires a diversified approach. Nevertheless, Netflix's impressive growth trajectory and strategic focus on emerging markets make it an interesting investment opportunity.
[1] "Netflix Q4 2024 Earnings Call Transcript." Seeking Alpha. 2025. [2] "Netflix Q1 2025 Earnings Call Transcript." Seeking Alpha. 2025. [3] "Netflix's Growth Strategy in Emerging Markets." Forbes. 2025.
- "Moving forward, Netflix plans to invest a substantial amount of money in local original content to attract and retain subscribers in Asia and Latin America, a strategic move that also enhances its competitive edge against domestic and regional streaming services in these economically promising regions."
- "With the extension of its ad-supported video on demand (AVOD) tier and a focus on local market dynamics, analysts predict that technology will play a significant role in Netflix's future finance, potentially driving sustained subscriber growth and profitability in emerging markets, especially in the Asia-Pacific and Latin America regions."
