The Netflix business model is based on subscription-based streaming, where users pay a recurring fee for access to a content library. Revenue is generated through multiple pricing tiers, including standard, premium, and ad-supported plans. The company invests heavily in content creation and licensing, which drives user acquisition and retention. Its direct-to-consumer approach eliminates intermediaries, allowing Netflix to control pricing, distribution, and user experience. The addition of advertising introduces a hybrid model, combining subscription and ad revenue. This diversification enhances monetization while expanding the addressable market.