Netflix (NFLX) risk factors, FY2025 10-K

Risks Related to Our Business

1. 01If our efforts to attract and retain members are not successful, our business will be adversely affected29% rewritten
2. 02If we do not continuously provide value to our members, including making improvements to our service in a manner that is favorably received by them, our revenue, results of operations and business will be adversely affected
3. 03Changes in competitive offerings for entertainment video could adversely impact our business
4. 04We face risks, such as unforeseen costs and potential liability in connection with content we acquire, produce, license and/or distribute through our service
5. 05If we are not able to manage change and growth, our business could be adversely affected
6. 06If we fail to maintain a positive reputation concerning our service and the content we offer, including any advertisements, we may not be able to attract or retain members, we may face regulatory scrutiny and our operating results may be adversely affected20% rewritten
7. 07Our business could be adversely impacted by costs and challenges associated with strategic acquisitions and investments37% rewritten
8. 08We rely upon a number of partners to make our service available on their devices
9. 09We are subject to payment processing risk
10. 10If government regulations relating to the internet or other areas of our business change, we may need to alter the manner in which we conduct our business, or incur greater operating expenses35% rewritten
11. 11We are engaged in legal proceedings that could cause us to incur unforeseen expenses and could occupy a significant amount of our management's time and attention
12. 12Our advertising offering is subject to various risks and uncertainties, which may adversely affect our business

Risks Related to Intellectual Property

1. 13If studios, content providers or other rights holders refuse to license streaming content or other rights upon terms acceptable to us, our business could be adversely affected
2. 14If our trademarks and other proprietary rights are not adequately protected to prevent use or appropriation by third parties, the value of our brand and other intangible assets may be diminished, and our business may be adversely affected
3. 15Intellectual property claims against us could be costly and result in the loss of significant rights related to, among other things, our technology, business processes, and content

Risks Related to Information Technology

1. 16We rely upon Amazon Web Services to operate certain aspects of our service and any disruption of or interference with our use of the Amazon Web Services operation would impact our operations and our business would be adversely impacted
2. 17If the technology we use in operating our business fails, is unavailable, or does not operate to expectations, our business and results of operations could be adversely impacted
3. 18Changes in how network operators handle and charge for access to data that travel across their networks could adversely impact our business

Risks Related to Privacy

1. 19Privacy concerns could limit our ability to collect and leverage member personal information and disclosure of member personal information could adversely impact our business and reputation
2. 20Our reputation and relationships with members would be harmed if member personal information, particularly billing data, were to be accessed by unauthorized persons

Risks Related to Liquidity

1. 21The long-term and largely fixed cost nature of our content commitments may limit our operating flexibility and could adversely affect our liquidity and results of operations
2. 22We may seek additional capital that may result in stockholder dilution or that may have rights senior to those of our common stockholders
3. 23We have a substantial amount of indebtedness and other obligations, including streaming content obligations, which could adversely affect our financial position, and we may not be able to generate sufficient cash to service our debt and other obligations44% rewritten

Risks Related to International Operations

1. 24We could be subject to economic, political, regulatory and other risks arising from our international operations
2. 25We are subject to taxation related risks in multiple jurisdictions

Risks Related to Human Resources

1. 26We may lose key employees or may be unable to hire qualified employees, and the failure to maintain and improve our company culture may adversely affect our business
2. 27Labor disputes may have an adverse effect on the Company’s business36% rewritten

Risks Related to Our Stock Ownership

1. 28Provisions in our charter documents and under Delaware law could discourage a takeover that stockholders may consider favorable, although we have announced plans to modify some of these provisions over time
2. 29Our stock price is volatile
3. 30As a result of these and other factors, investors in our common stock may not be able to resell their shares at or above their original purchase price
4. 31Preparing and forecasting our financial results requires us to make judgments and estimates which may differ materially from actual results
5. 32The WBD transaction may not be completed on the currently contemplated timeline or terms, or at allNew
6. 33The WBD transaction may cause our financial results to differ from expectations, we may not achieve the anticipated benefits of the WBD transaction, and the WBD transaction may disrupt our current plans or operationsNew