Netflix Defends Against Texas Spying Allegations as It Reveals $135B Spend
NFLX•Netflix reported $135 billion in content spending over the past decade, averaging $13.5 billion per year to fuel original programming. The company also submitted a legal response rejecting Texas's lawsuit alleging it spied on child subscribers, asserting its data collection supports parental controls and privacy.
1. Decade-Long Content Investment
Netflix invested $135 billion in content from 2016 through 2026, averaging $13.5 billion annually to expand its library of original series and films.
2. Defense Against Texas Lawsuit
Netflix filed a formal legal response rejecting Texas's allegations that it covertly tracked children's viewing habits, stating its data collection is limited to enhancing recommendation algorithms and parental controls.
3. Financial and Market Implications
While heavy content spending underscores commitment to growth, it pressures cash flow and margins, and the Texas lawsuit adds potential legal costs and reputational risk that could affect subscriber sentiment.
