2 weeks Ago By LW
is no stranger to international taxation and tariff challenges. The streaming giant has been paying the ( ) in European countries like the , and since 2019. However, recent rhetoric surrounding potential retaliatory tariffs in response to the trade war has raised concerns.
Could these tariffs derail growth trajectory in one of its most important international markets? One prominent analyst, Laurent Yoon from , has been examining the potential impact of these tariffs on . In a March 2025 report, Yoon addressed concerns about the effects of tariffs and declining engagement in the European market. His take: while has historically faced international taxes, a broader range of tariffs could harm its growth prospects.
Can Netflix avoid the financial hit? Yoon suggests that could argue its value to Europe, citing the company's substantial investment in local content and its employment of thousands across the continent. With Netflix contributing to Europe's media ecosystem, would European governments still impose punitive tariffs? Yoon believes that it's unlikely would bear the brunt of these taxes. However, a broader issue could arise if such tariffs increase the cost for consumers.
Imposing tariffs on services like could lead to higher subscription fees for consumers in countries like , the , and -markets where is the top ( ) service. Yoon argues that such price hikes would ultimately hurt local consumers more than the service providers. The financial impact on Netflix's growth Yoon's analysis points to a significant risk to growth in Europe, where the company has around 101 million subscribers as of 2024.
Tariffs could slow down this growth, resulting in higher churn rates and an overall deceleration of subscriber acquisition. This could also impact ability to raise prices in these key markets, possibly limiting its ability to grow its ( ). The worst-case scenario, according to Yoon, is a potential 10% downside to 2026 earnings per share forecast.
Despite these risks, remains a dominant player in European SVOD markets. Even with tariffs, the analyst expects the impact on overall growth to be less severe, with a potential downside in the mid-to-high single-digit range. As the market watches closely, earnings report in April 2025 will provide more clarity on how these potential tariffs could impact the company's future.
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