Netflix Eyes EMEA Expansion With Euro 1B Investment Plan in Spain

Netflix NFLX relies heavily on its international business as a key growth driver. In the first quarter of 2025, revenues rose 12.5% year over year, largely driven by strong international regional performance. Europe, Middle East, and Africa (EMEA) revenues grew 15% year over year to $3.4 billion and the Asia-Pacific (APAC) jumped 23% to $1.26 billion. Collectively, international markets contributed nearly 44% to total revenues, highlighting the company’s growing dependence on non-U.S.-based audiences.

Netflix now plans to invest €1 billion (approximately $1.14 billion) in Spain between 2025 and 2028, as it doubles down on Spanish shows. This long-term commitment will support the production of original content, local job creation and infrastructure development, including the expansion of studio operations in Madrid. The goal is to deepen its creative and operational footprint across the EMEA region.

Spain has evolved from a regional production site into a global content powerhouse for Netflix. With more than 1,000 Spanish titles released and billions of viewing hours generated, Spain has proven its value as a high-performing content market for the company. This new investment firmly establishes Spain as a cornerstone of Netflix’s broader EMEA expansion roadmap.

Further, Netflix’s focus on streaming regional content has been leading to international growth. The company is expanding its content pipeline across key markets, including India, Mexico, Spain, Italy, Germany, Brazil, France, Turkey and the Middle East, supporting both market-specific relevance and global viewership scale.

NFLX’s Competitors in the Streaming Space

The streaming landscape is growing more competitive, with Netflix facing rising pressure from Amazon Prime Video, a streaming television service owned by Amazon AMZN. By integrating its vast e-commerce ecosystem with streaming, Amazon offers a unique value proposition that challenges Netflix's dominance in the streaming space.

Meanwhile, Disney+, the streaming arm of Disney Entertainment, a major segment of Disney DIS, is accelerating its global growth by significantly increasing the production of international original content, directly challenging Netflix’s dominance in key overseas markets. Backed by an expanding international footprint and a powerful franchise-driven content lineup, Disney+ continues to post strong user growth, positioning itself as a formidable rival in the global streaming race.

NFLX’s Price Performance, Valuation & Estimates

Shares of Netflix have gained 36.6% year to date compared with the Zacks Broadcast Radio and Television industry’s return of 24.7%.

Netflix trades at a premium with a forward 12-month P/S ratio of 10.95 compared with the broader Zacks Broadcast Radio and Television industry's forward earnings multiple of 4.12. NFLX has a Value Score of D

The Zacks Consensus Estimate for NFLX’s 2025 revenues is pegged at $44.47 billion, indicating 14.01% year-over-year growth. The consensus mark for earnings is pegged at $25.32 per share, down by a penny over the past 30 days. This indicates a 27.69% increase from the previous year.

NFLX currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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