⚠ Argentina and the $1.4 Billion Currency HitModerate threat
Netflix (NFLX) — threat to the moat
Netflix can raise prices in pesos faster than inflation and still lose revenue in dollars, as Argentina showed in 2024.
Netflix raises prices in local currency and reports in dollars, and the conversion can erase much of the gain. In 2024 currency movements reduced revenue by about $1,424 million, "primarily driven by the devaluation of the Argentine peso"1. Latin American revenue per membership in constant currency rose 21% that year while the dollar figure fell2.
The exposure is structural: currencies other than the dollar were 56% of revenue in 20253. In the first half of 2026 currency cost about $535 million of revenue4.
Netflix partly offsets this because most of its costs are in dollars, which also means its margin moves with exchange rates.
Currency does not only hurt. In 2025 constant-currency revenue would have been about $271 million higher than reported5, a much smaller hit than 2024's, and in the second quarter of 2026 Latin American revenue grew faster in dollars than in local currency6. Currency adds volatility rather than a steady drag.
The number that tests this is the gap between reported and constant-currency growth. In 2025 Latin America grew 11% reported and 23% at constant currency7; a similar gap spreading to Europe would make foreign price rises worth far less than they appear.
- ReportedIn 2024 currency movements reduced revenue by about $1,424 million, "primarily driven by the devaluation of the Argentine peso".Netflix Form 10-K for fiscal 2024 - paid memberships and average monthly revenue per paying membership by region for 2022-2024, regional revenue for 2022, and the 2024 currency impact. — FY2024 · publ. January 2025 · source ↗
- ReportedLatin American revenue per membership in constant currency rose 21% that year while the dollar figure fell.Netflix Form 10-K for fiscal 2024 - paid memberships and average monthly revenue per paying membership by region for 2022-2024, regional revenue for 2022, and the 2024 currency impact. — FY2024 · publ. January 2025 · source ↗
- ReportedThe exposure is structural: currencies other than the dollar were 56% of revenue in 2025.Netflix Form 10-K for fiscal 2025 - Item 1A risk factors: competition, regulation and levies, currency, labor and the Brazil tax matter. — FY2025 · publ. 23 January 2026 · source ↗
- ReportedIn the first half of 2026 currency cost about $535 million of revenue.Netflix Form 10-Q for the quarter ended 30 June 2026 - content obligations, the termination fee, Brazil tax payments, share repurchases and the March 2026 acquisition. — Q2 2026 · publ. 17 July 2026 · source ↗
- ReportedIn 2025 constant-currency revenue would have been about $271 million higher than reported, a much smaller hit than 2024's, and in the second quarter of 2026 Latin American revenue grew faster in dollars than in local currency.Netflix Form 10-K for fiscal 2025 - Item 1A risk factors: competition, regulation and levies, currency, labor and the Brazil tax matter. — FY2025 · publ. 23 January 2026 · source ↗
- ReportedIn 2025 constant-currency revenue would have been about $271 million higher than reported, a much smaller hit than 2024's, and in the second quarter of 2026 Latin American revenue grew faster in dollars than in local currency.Netflix second-quarter 2026 shareholder letter, Form 8-K exhibit 99.1 - quarterly results, regional revenue, 2026 guidance, view hours, live programming and advertising - financial results, regional revenue and 2026 guidance. — Q2 2026 · publ. 16 July 2026 · source ↗
- ReportedIn 2025 Latin America grew 11% reported and 23% at constant currency; a similar gap spreading to Europe would make foreign price rises worth far less than they appear.Netflix Form 10-K for fiscal 2025 - Item 7 MD&A: streaming revenue by region. — FY2025 · publ. 23 January 2026 · source ↗