Netflix: A Compelling Platform for Earnings Growth

Netflix, Inc. (NFLX) was highlighted in RiverPark Large Growth 2025 Q2 for strong gains driven by subscriber growth and ad-supported tier success. The company added 32 million gross subscribers globally and reached over 90 million ad-tier users, contributing to solid revenue growth and better-than-expected profitability. RiverPark believes Netflix remains a compelling platform with a powerful engine for earnings growth.

Netflix, Inc. (NFLX) has made a significant move to bolster its UK ad sales by hiring Ed Couchman as the new leader of its UK advertising sales team [1]. The move comes as Netflix aims to double its ad revenue this year, maturing its ad business from infancy to "adolescence" [1].

Couchman, who previously served as head of advertising sales for the UK and Northern Europe at Spotify, brings extensive experience in both traditional and digital media. He has held senior ad sales roles at Snap, Meta, and Channel 4 before joining Spotify in 2023 [1]. His appointment will see him reporting to Damien Bernet, Netflix's VP of EMEA advertising, and replacing Warren Dias, who had been in the role for two years [1].

This strategic hire aligns with Netflix's broader goal of expanding its ad-supported tier. The company recently reported that its ad-supported tier had reached 94 million monthly active users and that it was on track to double its ad revenue in 2025 [1]. Netflix's co-CEO Greg Peters also highlighted the potential of interactive ad formats and generative AI to drive further ad growth [1].

Netflix's ad-supported tier has already shown promising signs of success in the UK. According to data from the UK communications regulator Ofcom, Netflix was the most popular video-on-demand service in the UK in 2024, with viewers watching for an average of 22 minutes per day [1]. Additionally, June data from Barb found that Netflix had the biggest share of 16- to 34-year-old viewers among all commercial video-on-demand services in the country [1].

While Netflix focuses on expanding its ad business, it continues to experience strong subscriber growth. The company added 32 million gross subscribers globally in the latest quarter, contributing to solid revenue growth and better-than-expected profitability [2]. NVIDIA Corp. (NVDA), highlighted in RiverPark Large Growth 2025 Q2, emerged as the top contributor to the portfolio's performance, underscoring the strategic importance of AI technologies in driving Netflix's growth [2].

References:
[1] https://www.businessinsider.com/netflix-makes-key-new-ad-hire-poaching-from-spotify-2025-7
[2] https://www.gurufocus.com/news/3023144/nvidia-corp-nvda-in-riverpark-large-growth-2025-q2