By Keerthi Ramesh
Netflix reported a milestone in its fiscal fourth quarter, topping 325 million global paid subscribers, a signal that the world’s largest streaming service continues to expand its reach even as it confronts competitive and strategic headwinds. At the same time, the company is trimming a high-profile content partnership, notably scrapping further seasons of Meghan Markle’s lifestyle series “With Love, Meghan.”
The subscriber tally, disclosed Tuesday with earnings results, reflects nearly 17 percent growth year-over-year and helped drive Netflix’s 2025 revenue to $45.2 billion, above Wall Street expectations. Revenue for the fourth quarter alone topped $12 billion, again ahead of forecasts, while profit climbed by nearly 30 percent from a year earlier.
“We’re pleased with subscriber momentum and the growing contribution from advertising,” co-CEO Ted Sarandos said in a statement. The company’s ad-supported tier accounted for roughly a quarter of new sign-ups in markets where it’s available, and ad revenue surged more than 150 percent, a trend executives say will continue into 2026.
Despite the overall upbeat results, Netflix’s shares slipped in after-hours trading, partly driven by the company’s revised offer to buy Warner Bros. Discovery assets in an all-cash deal and its decision to pause share buybacks. The strategy underscores Netflix’s push to expand its content library and compete with legacy media players and fellow streamers. Analysts caution that the acquisition, if completed, will saddle the company with significant debt and integration challenges.
READ Netflix revises bid for Warner Bros. Discovery to all-cash deal (January 20, 2026)
In a parallel development, “With Love, Meghan,” the cooking and lifestyle series featuring Markle, Duchess of Sussex, will not return for a third season on Netflix, according to multiple entertainment industry sources. The show, launched in March 2025, offered audiences a peek into recipes and home entertaining but failed to develop the sustained engagement Netflix seeks for original unscripted projects.
Insiders say the series’ production demands and middling viewership contributed to the decision. While the Sussexes’ broader creative deal with Netflix remains active under a first-look agreement with their Archewell Productions banner, the original $100 million multi-year pact will not be renewed in its previous form.
Markle is expected to shift lifestyle content to shorter-form outlets tied to her personal brand, and Archewell is developing other projects, including a scripted adaptation of “The Wedding Date.” Markle also made a surprise cameo in “Close Personal Friends,” an Amazon MGM film, fueling speculation about a return to acting even as Netflix scales back its role in lifestyle programming.
Netflix’s subscriber milestone comes at a moment of intense competition in streaming worldwide, with rivals like Disney+, Amazon Prime Video and regional players vying for viewers’ attention and dollars. To maintain its lead, Netflix plans to increase content spending by about 10 percent in 2026 and lean into advertising revenue and strategic acquisitions.
Still, industry observers note that as streaming penetration rises in North America and Europe, future growth may depend less on subscriber gains and more on how effectively Netflix turns engagement into revenue and profit. “The era of easy subscriber growth is behind us,” one analyst said, “but Netflix’s scale and content depth give it a powerful platform for whatever comes next.”