Why It Matters

Netflix Inc. faces three major legislative threats that could reshape its business model. The Lowering Broadband Costs for Consumers Act of 2025 would require Netflix to contribute to the Universal Service Fund—a potentially significant new operating cost with strong bipartisan backing. The expiration of Section 181 tax incentives on December 31, 2025 threatens to make U.S.-based production less cost-competitive unless Congress acts quickly.

Netflix has maintained a lobbying presence since 2005, evolving from external firms like Patton Boggs LLP to building a robust in-house operation since 2010. Q3 2025 spending of $750,000 reflects active engagement alongside Discovery Communications LLC and the Motion Picture Association Inc., suggesting industry-wide concern.

By the Numbers

Netflix Inc. reported $750,000 in Q3 2025 lobbying expenditures using its in-house lobbying team. The company’s in-house operation has filed 57 reports totaling $16.25 million since December 2010. Netflix supplements internal efforts with external firms including Monument Advocacy and Mehlman Consulting Inc.

The Q3 filing names three in-house lobbyists: Emma R. Rindels-Hill, with nearly six years of House experience under former Speaker Kevin McCarthy (R-CA-20); Diana W. Oo, former Counsel for the House Judiciary Committee with copyright expertise; and Tatum Williams.

The Agenda

Netflix Inc. is lobbying on four major policy areas in Q3 2025. The company is engaging on Universal Service Fund reform, where bipartisan legislation would require streaming services to contribute to broadband infrastructure costs. Netflix is pushing for extension of Section 181 production tax incentives, which expire December 31, 2025. The company is lobbying on artificial intelligence regulation, specifically the No FAKES Act governing digital replicas and deepfakes. Finally, Netflix is engaged on the Kids Online Safety Act, which would impose "duty of care" requirements on platforms serving minors.

Between The Lines

Congress is actively advancing legislation impacting Netflix’s business model. The Lowering Broadband Costs for Consumers Act of 2025 has bipartisan sponsors including Senators Mark Kelly (D-AZ), Markwayne Mullin (R-OK), Mike Crapo (R-ID), and Kevin Cramer (R-ND), arguing that streaming services account for roughly 75% of rural network traffic and should fund broadband infrastructure. H.R.3844 – Texas is the New Hollywood Act of 2025 aims to extend production incentives through 2035, with Rep. Nicole Malliotakis (R-NY-11) leading bipartisan efforts before the December 31, 2025 expiration.

Competitive Landscape

Netflix isn’t lobbying alone. Discovery Communications LLC shows coordinated advocacy on identical priorities through recent Q4 2024, Q1 2025, and Q2 2025 filings covering tax incentives, Universal Service Fund contributions, AI regulation, and content protection. The Motion Picture Association Inc. is leading broader industry efforts through its Q1 2025 filing to secure federal film tax credits and extend Section 181 provisions.

The Bottom Line

Netflix is spending $750,000 this quarter to combat bipartisan legislation requiring streaming services to fund rural broadband networks, preserve expiring tax incentives, and shape AI and children’s safety regulations. The Lowering Broadband Costs for Consumers Act represents the most immediate threat, backed by broad bipartisan support. Netflix’s priorities align with other major streamers, indicating industry-wide coordination around tax policy and broadband cost-sharing.

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