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Netflix (NFLX) Moat Score : 8/10 (As of Jul. 05, 2025)


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What is Netflix Moat Score?

Netflix has the Moat Score of 8, which implies that the company might have Wide Moat - Clear and robust wide moat.

Netflix has Wide Moat: Netflix Inc has a robust wide moat due to its strong brand, significant market share, and network effects. It benefits from high customer loyalty, proprietary technology, and substantial pricing power, supported by consistent innovation and content creation.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Netflix might have Wide Moat - Clear and robust wide moat.


Competitive Comparison of Netflix's Moat Score

For the Entertainment subindustry, Netflix's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Netflix's Moat Score Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Netflix's Moat Score distribution charts can be found below:

* The bar in red indicates where Netflix's Moat Score falls into.


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Netflix  (NAS:NFLX) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Netflix Moat Score Related Terms

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Netflix Business Description

Address
121 Albright Way, Los Gatos, CA, USA, 95032
Netflix's relatively simple business model involves only one business, its streaming service. It has the biggest television entertainment subscriber base in both the United States and the collective international market, with more than 300 million subscribers globally. Netflix has exposure to nearly the entire global population outside of China. The firm has traditionally avoided a regular slate of live programming or sports content, instead focusing on on-demand access to episodic television, movies, and documentaries. The firm introduced ad-supported subscription plans in 2022, giving the firm exposure to the advertising market in addition to the subscription fees that have historically accounted for nearly all its revenue.
Executives
Jeffrey William Karbowski officer: Chief Accounting Officer 121 ALBRIGHT WAY, LOS GATOS CA 95032
Leslie J Kilgore director 121 ALBRIGHT WAY, LOS GATOS CA 95032
Strive Masiyiwa director 265 FRANKLIN STREET, BOSTON MA 02110
Bradford L Smith director MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Ann Mather director
Theodore A Sarandos officer: Chief Content Officer C/O NETFLIX, INC, 121 ALBRIGHT WAY, LOS GATOS CA 95032
Spencer Adam Neumann officer: Chief Financial Officer SIERRA INCOME CORPORATION, 375 PARK AVE., SUITE 3304, NEW YORK NY 10152
Gregory K Peters officer: Intl. Development Officer C/O NETFLIX, INC., 121 ALBRIGHT WAY, LOS GATOS CA 95032
David A Hyman officer: General Counsel C/O NETFLIX, INC., 121 ALBRIGHT WAY, LOS GATOS CA 95032
Reed Hastings director, 10 percent owner, officer: CEO, other: CEO 121 ALBRIGHT WAY, LOS GATOS CA 95032
Mathias Dopfner director C/O TIME WARNER INC., ONE TIME WARNER CENTER, NEW YORK NY 10019
Jay C Hoag director 250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Richard N Barton director C/O IAC, 152 WEST 57TH STREET, NEW YORK NY 10019
Anne M Sweeney director C/O 121 ALBRIGHT WAY, LOS GATOS CA 95032
Timothy M Haley director 3000 SAND HILL ROAD, 2-290, MENLO PARK CA 94025