EMEANarrow moat

Netflix (NFLX) — moat facet

Europe gives Netflix more members than North America at about two-thirds of the price, and grows by adding people rather than raising fees.

Europe, the Middle East and Africa form Netflix's second-largest line and its largest by membership. EMEA streaming revenue was $14,514.6 million in 20251, 32.1% of the total2, and $4,034 million in the second quarter of 20263.

EMEA streaming revenue ($M)9,745202210,557202312,387202414,5152025Netflix Forms 10-K FY2024 and FY2025
Up half in three years.

Inside the line are 101.1 million memberships at the end of 20244, more than UCAN's 89.6 million, paying less each: $10.96 a month on average in 20245. Netflix also integrated TF1's channels in France6.

The history is steady growth. Revenue rose from $9,745 million in 2022 to $10,556.5 million in 2023, $12,387 million in 2024 and $14,514.6 million in 202578. Memberships grew 31.8% between the end of 2022 and 20249.

How it is paid: monthly fees in many currencies, which is why reported and constant-currency growth differ. EMEA grew 17% reported and 16% at constant currency in 202510, and 14% reported and 11% at constant currency in the second quarter of 202611.

Profitability is not disclosed by region12. Revenue per membership was flat over the three years, $10.99 in 2022 against $10.96 in 202413, so growth has come from more members rather than higher prices.

The region carries the regulatory risk. Netflix warns that European Union member states may impose levies and financial obligations on media operators14, and local investment rules push spending toward each country.

EMEA's employees and revenue are out of proportion in the other direction. About 2,500 people, 16% of the workforce, work in the region15, against 32% of revenue. Content made anywhere can be watched everywhere: non-English titles account for more than a third of all viewing16. That is the global-distribution advantage at work, with a Spanish or German series paid for once and shown in every region.

The 10-K names investment obligations, levies and content quotas among the rules that can apply to it. Netflix's 10-K singles out the European Union, whose member states may impose levies and other financial obligations on media operators17. For a region that grew to $14,514.6 million of revenue in 202518, a levy of even a few percent of revenue would be a noticeable cost, and it would fall on the region where Netflix has the most members.

The outlook is continued member growth with modest pricing. The verdict would change if EMEA growth at constant currency fell below 10%, which would say Europe has joined North America as a mature market without its pricing power.

Moat trajectory: Holding steady

Revenue +17% in 2025, +11% constant currency in Q2 2026.

The number that tests this moat
Reported
EMEA streaming revenue growth, latest quarter
+14% reported, +11% constant currency (Q2 2026)

Europe's underlying growth; below 10% at constant currency would mean maturity without pricing power.

Source: Netflix Q2 2026 shareholder letter ↗
References
  1. ReportedEMEA streaming revenue was $14,514.6 million in 2025, 32.1% of the total, and $4,034 million in the second quarter of 2026.
    Netflix Form 10-K for fiscal 2025 - Item 7 MD&A: streaming revenue by region. — FY2025 · publ. 23 January 2026 · source ↗
  2. Moat Explorer calcEMEA streaming revenue was $14,514.6 million in 2025, 32.1% of the total, and $4,034 million in the second quarter of 2026.
    Moat Explorer calculation from Netflix's reported financial statements, shareholder letters and market data ($ millions unless stated). Content amortization / revenue: 14,026.1 / 31,615.6 = 44.4% (2022); 14,197.4 / 33,723.3 = 42.1% (2023); 15,301.5 / 39,001.0 = 39.2% (2024); 16,422.2 / 45,183.0 = 36.3% (2025); Q2 2026 4,311.3 / 12,559.9 = 34.3%. Revenue growth 2022-2025: 45,183.0 / 31,615.6 - 1 = 43%; 2025 45,183.0 / 39,001.0 - 1 = 15.9%. Operating income 13,326.6 / 5,632.8 = 2.4 times. Gross margin (45,183.0 - 23,275.3) / 45,183.0 = 48.5% (2025); (33,723.3 - 19,715.4) / 33,723.3 = 41.5% (2023). Q3 2025 operating margin excluding the Brazil charge (3,248 + 619) / 11,510 = 33.6%. Additions to content assets Q2 2026 4,927.5 / 3,835.8 - 1 = 28%. Cash content spend = additions less change in content liabilities: 16,839.0 - 179.3 = 16,659.7 (2022), 12,554.7 + 585.6 = 13,140.3 (2023), 16,223.6 + 779.1 = 17,002.8 (2024), 17,096.6 + 610.8 = 17,707.5 (2025); ratio to amortization 16,659.7 / 14,026.1 = 1.19, 13,140.3 / 14,197.4 = 0.93, 17,002.8 / 15,301.5 = 1.11, 17,707.5 / 16,422.2 = 1.08. Licensed share of amortization 8,713.6 / 16,422.2 = 53%; licensed growth 8,713.6 / 7,689.0 - 1 = 13.3%; produced growth 7,708.6 / 7,612.5 - 1 = 1.3%. Produced share of content assets 20,639.8 / 32,778.4 = 63%; content assets / amortization 32,778.4 / 16,422.2 = 2.0 years. Tax incentives / produced amortization 1,000 / 7,708.6 = 13%; tax incentives / operating income 1,000 / 13,326.6 = 7.5%. Employees outside UCAN 16,000 - 10,900 = 5,100. Capex / revenue 688.2 / 45,183.0 = 1.5%; capex growth 688.2 / 439.5 - 1 = 57%. Free cash flow = operating cash flow less capex: 10,149.3 - 688.2 = 9,461.1 (2025); 7,361.4 - 439.5 = 6,921.8 (2024); 7,274.3 - 348.6 = 6,925.7 (2023); FCF / revenue 9,461.1 / 45,183.0 = 20.9%; FCF / net income 9,461.1 / 10,981.2 = 86%; capex / FCF 348.6 / 6,925.7 = 5.0%, 439.5 / 6,921.8 = 6.4%, 688.2 / 9,461.1 = 7.3%. Buybacks / FCF 9,127.2 / 9,461.1 = 96%; buybacks 2024 + 2025 6,263.7 + 9,127.2 = 15,390.9; diluted shares 4,261 / 4,349 - 1 = -2.0%; remaining authorization 27.1 / 296.24 = 9%. Year-end P/E = market value / net income: 213.10 / 5.408 = 39.4 (2023), 381.00 / 8.712 = 43.7 (2024), 397.29 / 10.981 = 36.2 (2025), trailing 296.24 / 13.650 = 21.7. Net debt / equity end 2025 (14,462.8 - 9,033.7 - 28.7) / 26,615.5 = 0.20; interest / operating income 776.5 / 13,326.6 = 5.8%; termination fee / 2025 net income 2,800 / 10,981.2 = 25%; ROE 10,981.2 / ((26,615.5 + 24,743.6) / 2) = 43%; net income growth 10,981.2 / 8,711.6 - 1 = 26%. Pre-tax income 2025 10,981.2 + 1,741.4 = 12,722.6, one point of tax rate = 127; six points = 763. UCAN ARM 17.20 / 15.86 - 1 = 8.4%; UCAN net additions 80,128 - 74,296 = 5,832 (2023), 89,625 - 80,128 = 9,497 (2024); paid memberships growth 301,626 / 260,276 - 1 = 16%; top plan price 37 / 32 - 1 = 15.6%. Obligations: due in 12 months / revenue 11,528.0 / 45,183.0 = 25.5%; obligations / debt 25.1 / 14.3 = 1.75; off balance sheet 18.4 / 24.0 = 76% (end 2025), 19.6 / 25.1 = 78% (June 2026). Advertising: 1.5 / 45.2 = 3.3% of 2025 revenue; 3.0 / 51.2 = 5.9% of the 2026 guidance midpoint (51.0 + 51.4) / 2 = 51.2. Nielsen gap 13.8 - 8.0 = 5.8 points. Regions: 2025 shares UCAN 19,957.2 / 45,183.0 = 44.2%, EMEA 14,514.6 / 45,183.0 = 32.1%, LATAM 5,357.5 / 45,183.0 = 11.9%, APAC 5,353.7 / 45,183.0 = 11.8%; Q2 2026 UCAN 5,432 / 12,560 = 43.2%. UCAN growth 14,873.8 / 14,084.6 - 1 = 5.6% (2023), 17,359.4 / 14,873.8 - 1 = 16.7% (2024), 19,957.2 / 17,359.4 - 1 = 15.0% (2025). EMEA memberships 101,133 / 76,729 - 1 = 31.8%; APAC memberships 57,541 / 38,023 - 1 = 51.3%; APAC revenue 5,353.7 / 3,570.2 - 1 = 50%. UCAN share of 2022 streaming revenue 14,084.6 / 31,469.9 = 44.8%. Memberships 2022-2024: UCAN 89,625 / 74,296 - 1 = 20.6%, LATAM 53,327 / 41,699 - 1 = 27.9%. ARM gap UCAN less APAC 15.86 - 8.50 = 7.36 (2022), 17.20 - 7.29 = 9.91 (2024). H1 2026 revenue 24,809.7 / 51,200 = 48.5% of the guidance midpoint. Diluted shares 4,343,863 / 4,494,966 - 1 = -3.4%. Average buyback price Q2 2026 4.7bn / 52.93M shares = about $89; 2025 9,127.2 / 86.54M shares = about $105; 71.15 / 105 - 1 = -32%. Analyst target 92.93 / 71.15 - 1 = 31%. US revenue 18.5 / 13.8 - 1 = 34%. Hedging swing 124 - (-91) = 215. Revenue 2023-2025 45,183.0 / 33,723.3 - 1 = 34%; employees 16,000 / 13,000 - 1 = 23%. Q2 net income 3,401 / 3,125 - 1 = 8.8%. DVD revenue = total revenue less streaming revenue: 33,723.3 - 33,640.5 = 82.8 (2023); 31,615.6 - 31,469.9 = 145.7 (2022) - regional revenue, memberships and viewing share. — 2015-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Netflix's Forms 10-K and 10-Q, shareholder letters, Nielsen's May 2026 Gauge and market data; operands shown in the source line.
  3. ReportedEMEA streaming revenue was $14,514.6 million in 2025, 32.1% of the total, and $4,034 million in the second quarter of 2026.
    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 ↗
  4. ReportedInside the line are 101.1 million memberships at the end of 2024, more than UCAN's 89.6 million, paying less each: $10.96 a month on average in 2024.
    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 ↗
  5. ReportedInside the line are 101.1 million memberships at the end of 2024, more than UCAN's 89.6 million, paying less each: $10.96 a month on average in 2024.
    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 ↗
  6. ReportedNetflix also integrated TF1's channels in France.
    Netflix second-quarter 2026 shareholder letter, Form 8-K exhibit 99.1 - quarterly results, regional revenue, 2026 guidance, view hours, live programming and advertising - programming, engagement, live events and product. — Q2 2026 · publ. 16 July 2026 · source ↗
  7. ReportedRevenue rose from $9,745 million in 2022 to $10,556.5 million in 2023, $12,387 million in 2024 and $14,514.6 million in 2025.
    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 ↗
  8. ReportedRevenue rose from $9,745 million in 2022 to $10,556.5 million in 2023, $12,387 million in 2024 and $14,514.6 million in 2025.
    Netflix Form 10-K for fiscal 2025 - Item 7 MD&A: streaming revenue by region. — FY2025 · publ. 23 January 2026 · source ↗
  9. Moat Explorer calcMemberships grew 31.8% between the end of 2022 and 2024.
    Moat Explorer calculation from Netflix's reported financial statements, shareholder letters and market data ($ millions unless stated). Content amortization / revenue: 14,026.1 / 31,615.6 = 44.4% (2022); 14,197.4 / 33,723.3 = 42.1% (2023); 15,301.5 / 39,001.0 = 39.2% (2024); 16,422.2 / 45,183.0 = 36.3% (2025); Q2 2026 4,311.3 / 12,559.9 = 34.3%. Revenue growth 2022-2025: 45,183.0 / 31,615.6 - 1 = 43%; 2025 45,183.0 / 39,001.0 - 1 = 15.9%. Operating income 13,326.6 / 5,632.8 = 2.4 times. Gross margin (45,183.0 - 23,275.3) / 45,183.0 = 48.5% (2025); (33,723.3 - 19,715.4) / 33,723.3 = 41.5% (2023). Q3 2025 operating margin excluding the Brazil charge (3,248 + 619) / 11,510 = 33.6%. Additions to content assets Q2 2026 4,927.5 / 3,835.8 - 1 = 28%. Cash content spend = additions less change in content liabilities: 16,839.0 - 179.3 = 16,659.7 (2022), 12,554.7 + 585.6 = 13,140.3 (2023), 16,223.6 + 779.1 = 17,002.8 (2024), 17,096.6 + 610.8 = 17,707.5 (2025); ratio to amortization 16,659.7 / 14,026.1 = 1.19, 13,140.3 / 14,197.4 = 0.93, 17,002.8 / 15,301.5 = 1.11, 17,707.5 / 16,422.2 = 1.08. Licensed share of amortization 8,713.6 / 16,422.2 = 53%; licensed growth 8,713.6 / 7,689.0 - 1 = 13.3%; produced growth 7,708.6 / 7,612.5 - 1 = 1.3%. Produced share of content assets 20,639.8 / 32,778.4 = 63%; content assets / amortization 32,778.4 / 16,422.2 = 2.0 years. Tax incentives / produced amortization 1,000 / 7,708.6 = 13%; tax incentives / operating income 1,000 / 13,326.6 = 7.5%. Employees outside UCAN 16,000 - 10,900 = 5,100. Capex / revenue 688.2 / 45,183.0 = 1.5%; capex growth 688.2 / 439.5 - 1 = 57%. Free cash flow = operating cash flow less capex: 10,149.3 - 688.2 = 9,461.1 (2025); 7,361.4 - 439.5 = 6,921.8 (2024); 7,274.3 - 348.6 = 6,925.7 (2023); FCF / revenue 9,461.1 / 45,183.0 = 20.9%; FCF / net income 9,461.1 / 10,981.2 = 86%; capex / FCF 348.6 / 6,925.7 = 5.0%, 439.5 / 6,921.8 = 6.4%, 688.2 / 9,461.1 = 7.3%. Buybacks / FCF 9,127.2 / 9,461.1 = 96%; buybacks 2024 + 2025 6,263.7 + 9,127.2 = 15,390.9; diluted shares 4,261 / 4,349 - 1 = -2.0%; remaining authorization 27.1 / 296.24 = 9%. Year-end P/E = market value / net income: 213.10 / 5.408 = 39.4 (2023), 381.00 / 8.712 = 43.7 (2024), 397.29 / 10.981 = 36.2 (2025), trailing 296.24 / 13.650 = 21.7. Net debt / equity end 2025 (14,462.8 - 9,033.7 - 28.7) / 26,615.5 = 0.20; interest / operating income 776.5 / 13,326.6 = 5.8%; termination fee / 2025 net income 2,800 / 10,981.2 = 25%; ROE 10,981.2 / ((26,615.5 + 24,743.6) / 2) = 43%; net income growth 10,981.2 / 8,711.6 - 1 = 26%. Pre-tax income 2025 10,981.2 + 1,741.4 = 12,722.6, one point of tax rate = 127; six points = 763. UCAN ARM 17.20 / 15.86 - 1 = 8.4%; UCAN net additions 80,128 - 74,296 = 5,832 (2023), 89,625 - 80,128 = 9,497 (2024); paid memberships growth 301,626 / 260,276 - 1 = 16%; top plan price 37 / 32 - 1 = 15.6%. Obligations: due in 12 months / revenue 11,528.0 / 45,183.0 = 25.5%; obligations / debt 25.1 / 14.3 = 1.75; off balance sheet 18.4 / 24.0 = 76% (end 2025), 19.6 / 25.1 = 78% (June 2026). Advertising: 1.5 / 45.2 = 3.3% of 2025 revenue; 3.0 / 51.2 = 5.9% of the 2026 guidance midpoint (51.0 + 51.4) / 2 = 51.2. Nielsen gap 13.8 - 8.0 = 5.8 points. Regions: 2025 shares UCAN 19,957.2 / 45,183.0 = 44.2%, EMEA 14,514.6 / 45,183.0 = 32.1%, LATAM 5,357.5 / 45,183.0 = 11.9%, APAC 5,353.7 / 45,183.0 = 11.8%; Q2 2026 UCAN 5,432 / 12,560 = 43.2%. UCAN growth 14,873.8 / 14,084.6 - 1 = 5.6% (2023), 17,359.4 / 14,873.8 - 1 = 16.7% (2024), 19,957.2 / 17,359.4 - 1 = 15.0% (2025). EMEA memberships 101,133 / 76,729 - 1 = 31.8%; APAC memberships 57,541 / 38,023 - 1 = 51.3%; APAC revenue 5,353.7 / 3,570.2 - 1 = 50%. UCAN share of 2022 streaming revenue 14,084.6 / 31,469.9 = 44.8%. Memberships 2022-2024: UCAN 89,625 / 74,296 - 1 = 20.6%, LATAM 53,327 / 41,699 - 1 = 27.9%. ARM gap UCAN less APAC 15.86 - 8.50 = 7.36 (2022), 17.20 - 7.29 = 9.91 (2024). H1 2026 revenue 24,809.7 / 51,200 = 48.5% of the guidance midpoint. Diluted shares 4,343,863 / 4,494,966 - 1 = -3.4%. Average buyback price Q2 2026 4.7bn / 52.93M shares = about $89; 2025 9,127.2 / 86.54M shares = about $105; 71.15 / 105 - 1 = -32%. Analyst target 92.93 / 71.15 - 1 = 31%. US revenue 18.5 / 13.8 - 1 = 34%. Hedging swing 124 - (-91) = 215. Revenue 2023-2025 45,183.0 / 33,723.3 - 1 = 34%; employees 16,000 / 13,000 - 1 = 23%. Q2 net income 3,401 / 3,125 - 1 = 8.8%. DVD revenue = total revenue less streaming revenue: 33,723.3 - 33,640.5 = 82.8 (2023); 31,615.6 - 31,469.9 = 145.7 (2022) - content costs, margins and capital spending. — 2015-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Netflix's Forms 10-K and 10-Q, shareholder letters, Nielsen's May 2026 Gauge and market data; operands shown in the source line.
  10. ReportedEMEA grew 17% reported and 16% at constant currency in 2025, and 14% reported and 11% at constant currency in the second quarter of 2026.
    Netflix Form 10-K for fiscal 2025 - Item 7 MD&A: streaming revenue by region. — FY2025 · publ. 23 January 2026 · source ↗
  11. ReportedEMEA grew 17% reported and 16% at constant currency in 2025, and 14% reported and 11% at constant currency in the second quarter of 2026.
    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 ↗
  12. ReportedProfitability is not disclosed by region.
    Netflix Form 10-K for fiscal 2025 - Item 1 business and Item 7 overview: the single segment, pricing plans, Open Connect, employees and the end of membership reporting. — FY2025 · publ. 23 January 2026 · source ↗
  13. ReportedRevenue per membership was flat over the three years, $10.99 in 2022 against $10.96 in 2024, so growth has come from more members rather than higher prices.
    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 ↗
  14. ReportedNetflix warns that European Union member states may impose levies and financial obligations on media operators, and local investment rules push spending toward each country.
    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 ↗
  15. ReportedAbout 2,500 people, 16% of the workforce, work in the region, against 32% of revenue.
    Netflix Form 10-K for fiscal 2025 - Item 1 business and Item 7 overview: the single segment, pricing plans, Open Connect, employees and the end of membership reporting. — FY2025 · publ. 23 January 2026 · source ↗
  16. ReportedContent made anywhere can be watched everywhere: non-English titles account for more than a third of all viewing.
    Netflix second-quarter 2026 shareholder letter, Form 8-K exhibit 99.1 - quarterly results, regional revenue, 2026 guidance, view hours, live programming and advertising - programming, engagement, live events and product. — Q2 2026 · publ. 16 July 2026 · source ↗
  17. ReportedNetflix's 10-K singles out the European Union, whose member states may impose levies and other financial obligations on media operators.
    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 ↗
  18. ReportedFor a region that grew to $14,514.6 million of revenue in 2025, a levy of even a few percent of revenue would be a noticeable cost, and it would fall on the region where Netflix has the most members.
    Netflix Form 10-K for fiscal 2025 - Item 7 MD&A: streaming revenue by region. — FY2025 · publ. 23 January 2026 · source ↗
Sources
Generated September 26, 2026