Netflix's Growth Strategy Is About More Than Just Warner Bros.

Netflix (NASDAQ: NFLX) has been a growth stock darling of the first quarter of the 21st century. Going from a simple service mailing digital video discs through the U.S. Postal Service to a tech-forward first-adopter of the full power of the accelerated internet, Netflix has rewarded long-term shareholders with amazing returns.

The question every investor faces with a highly successful company is what the next chapter of the story looks like. For Netflix, investors have their attention squarely focused on its ongoing efforts to acquire longtime Hollywood studio Warner Bros. Discovery (NASDAQ: WBD). Yet there's more to Netflix's growth strategy than just acquiring content and production capacity from outside players. In this third and final article on Netflix for my Voyager Portfolio, you'll get a closer look at the bigger picture on how the streaming giant expects to continue its growth trajectory for years to come.

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Engaging the world

Netflix consistently notes the importance of building its global audience, which is approaching the 1 billion mark worldwide. Increasingly, original content has been the key to keeping viewers happy. Blockbuster success stories like Stranger Things and Guillermo del Toro's Frankenstein play big roles in driving continued loyalty from Netflix subscribers, but the company also counts on more tailored content that attracts viewers in certain targeted demographics.

Offering new types of entertainment has also pushed Netflix forward. Video games and party games bring variety to the lineup, and Netflix recently introduced a slate of video podcasts to supplement its other types of media and squeeze value from key partnerships with media partners like Spotify (NYSE: SPOT). And for those looking for live experiences, the new Netflix Houses in the Dallas and Philadelphia areas give fans a place to celebrate their favorite shows and gather together.

Live video events are also coming to the forefront. With successful presentations of National Football League coverage in late December, Netflix joined the group of industry giants vying for the right to show this popular content. And again, Netflix has the opportunity here to cater to local audiences, such as through its coverage of the World Baseball Classic in Japan early in 2026.

The hope for Warner Bros.

All that said, Netflix is putting its muscle behind its Warner Bros. acquisition . In Netflix's view, the acquisition will give consumers more choice and greater value, while also boosting opportunities for creators within the broader entertainment industry. Netflix's current plan is to allow the two businesses to run independently, perhaps as a nod to antitrust regulators who would balk more aggressively at the deal if it involved a more complete consolidation of the video streaming companies.

One big part of the Warner Bros. purchase involves taking its library of content as a starting point for further development. Just as Disney (NYSE: DIS) has shown repeatedly with key franchises within the Marvel and Star Wars universes, Netflix hopes that it will be able to squeeze value from Warner Bros. legacy content that has been in the collective consciousness of entertainment fans for more than a century now.

Obviously, Netflix isn't blind to the potential positive impact for shareholders. The company sees $2 billion to $3 billion of annual cost savings to be possible from the combination within a few years. Yet despite its size and importance, the acquisition fits well within Netflix's broader strategy of trying to keep expanding to encompass the entire entertainment universe.

Is Netflix a Voyager Portfolio value stock?

At this point, I won't be buying Netflix for the Voyager Portfolio. It's not the sort of under-the-radar company that fits best for this portfolio. But that doesn't mean it's not an increasingly compelling stock, particularly as it continues to see its share price fall from last year's highs. If it keeps dropping enough, Netflix stock might end up making a guest appearance in the portfolio at some point.

Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix, Spotify Technology, Walt Disney, and Warner Bros. Discovery. The Motley Fool has a disclosure policy.