NETFLIX INC (NFLX) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that NETFLIX INC surfaced in its latest filing.

• Expanded entertainment video offering to include games and live programming
• Introduced lower-priced ad-supported subscription plan
• Increased enforcement of terms of use to limit multi-household usage and shared viewing outside of a household
• Ongoing guild payments and production costs
• Negotiations or renewals related to entertainment industry collective bargaining agreements could negatively impact timing and costs of productions
• Agreements with various cable, satellite and telecommunications operators to make the service available through TV set-top boxes
• Our agreements with partners are typically between one and three years in duration
• EU and US jointly committed in July 2025 not to adopt network usage fees, but risk remains in EU and other jurisdictionsJuly 2025
• A US federal appeals court overturned the FCC's net neutrality rules in January 2025January 2025
• Litigation matters have included copyright and other claims related to content and products
• Litigation matters have included patent infringement claims
• Litigation matters have included tax litigation
• Litigation matters have included employment-related litigation
• Litigation matters have included consumer and securities class actions
• Subject to Regulation (EU) 2016/679 (GDPR)
• Subject to the California Privacy Rights Act (CPRA)
• Subject to the California Consumer Privacy Act
• As of December 31, 2025, we had $14.5 billion aggregate principal amount of senior notes outstanding, some denominated in non-USD currenciesDecember 31, 2025
• Revolving credit agreement provides for a $3 billion unsecured revolving credit facility with no borrowings as of December 31, 2025December 31, 2025
• As of December 31, 2025, we had approximately $5.7 billion of total content liabilities, some denominated in non-USD currencies, excluding significant streaming content commitments not recognized as liabilitiesDecember 31, 2025
• In connection with the WBD transaction, we have commitments for a $42.2 billion senior unsecured bridge term loan facility
• In connection with the WBD transaction, we entered into a $5 billion senior unsecured revolving credit facility
• In connection with the WBD transaction, we entered into a $20 billion senior unsecured delayed draw term loan facility
• The EU revised its Audio Visual Media Services Directive in 2018 to require at least 30% European works in catalogs with prominence2018
• The major U.S. guild collective bargaining agreements to which the Company is a signatory each expire in 20262026
• The WGA agreement expires on May 1, 2026May 1, 2026
• The SAG-AFTRA and DGA agreements both expire on June 30, 2026June 30, 2026
• A $5.8 billion termination fee may be payable by Netflix if the WBD transaction does not close under certain specified circumstances