Is Netflix Stock Halal or Haram – Best Answer in 2024

Is Netflix Stock Halal

With the Netflix Stocks (NFLX) are boosting starting 19 October 2023 (NFLX Stock Surge 16%), stock traders are all set to play their best move. The strengthening Shares of Netflix in US, UK and France have attracted the Share Traders across the globe. If you are Islamic follower and a Share Trader as well, you might be confused over Is Netflix Stock Halal or Haram. Can a Muslim Stock market trader buy share of Netflix without breaking Halal Guidelines or NOT ?

We will keep this article simple and high level. This will make every reader from any background or experience to make and idea on the question – Is Netflix Stock Halal. Read on the article we have all researched content to help you get over with this catch-22.

Understanding Netflix Business

Netflix is an On-demand OTT(Over-The-Top) media platform for streaming shows, movies and other entertainment services. The Company has headquarter in Los Gatos, California , United States and employs more than 12500 employees. Netflix is a pure communication business and nothing is free here. They charge users for viewership. Viewers become their subscribers by buying their plan and hence Netflix makes profit.

So pure “give and take” relationship business, nothing comes free or for charity at Netflix platform. Netflix net income is $4.5 billion as of year 2022.

So if we see, Netflix makes profit out of selling the digital content. The halal status of Netflix will be primarily decided by how they produce content, what type of content they produce or cater to the viewers, is the Netflix content halal or haram, if Netflix follows Sharia Law and Rules or not.

Also read : Is Affiliate Marketing Halal or Haram

Is the Netflix Content Halal or Haram

In first place, Netflix content is haram. Netflix not only produces their own content but also procure its content from various other media houses. The content variety of Netflix is not Islamic religion oriented. There is no interest of Netflix to abide by what is Halal or haram to create, to procure and to publish on the platform. Netflix has both kind of content that is Halal as well Haram.

The moment there is haram content, whole content becomes haram. In nutshell, what content Netflix serve to users is not good for environment, society or government (ESG). There is high probability of showing adult content as well in the name of OTT. The OTT content is least censored and so there is high probability of content going haram as per Islamic laws and teachings.

As per Islamic law, not more than 5% of business profit can come from non-sharia compliant resources. If the haram content is more than 5%, then it will be haram business. This is easy to understand what kind of content Netflix shows and surely it has to be more than 5% that is impermissible as per Islam. This can lead to Netflix content and this Netflix stock in haram category.

Also Read: Is Dropshipping Halal or Haram 

Netflix Interest Margins, Debt, Total Assets and Market Capture

a). Let us check the ratio between Total Liabilities to Total Assets ratio. Ideally total liabilities should be less than 33% of total assets.

Netflix total liabilities : $27.99B for June 30, 2023

Netflix total assets : $50.82B for June 30, 2023

If we see Total Liabilities to Total Assets Ratio its

27.99/50.82 = 0.55

That is 55%.

This figure is way more than 33% Permissible and hence can put Netflix Stock into Haram category as  first hand observation .

b). Let us check the ratio between Total Liabilities to Market Cap ratio. Ideally total liabilities should be less than 33% of total assets.

Netflix total liabilities : $27.99B for June 30, 2023

Netflix Market Cap : $77.77B for June 30, 2023

If we see Total Liabilities to Market Cap Ratio its

27.99/77.77 = 0.35

That is 35%.

This figure is again more than 33% Permissible and hence can put Netflix Stock into Haram category as first hand observation .However it’s worth noting that Market capitalisation of Netflix is changing very drastically and this number on various occasions have been found out way less than 33% making Netflix Stocks as Halal

However as of June2023, the ratio can be said under permissible range. If we talk of present market cap of Netflix as of 20th oct 20023 its, $178.4B. If we extrapolate the Oct 2023 Total Liabilities of Netflix, and then calculate the ratio it will be way lesser than 33%. Here Netflix stocks wins and comes under Halal category.

Also Read: Is Social Media Halal or Haram

Frequently asked Questions (FAQs)

Is Stock Trading Halal or Haram

Yes it’s halal at first place and one of best way to make money online. But you need to be sure about the company’s business and revenue model. The companies interest to assets margins.

Is Watching Netflix Halal or Haram

No, what you choose to watch will be haram and halal. Netflix has a lot of good content. If you are watching any adult content or anything no permissible as per Islamic laws and halal guidelines then it will be considered as haram.

Is Amazon Prime Halal or Haram

What you do with Amazon prime services will make it halal or haram for you. As first thought, Amazon Prime is not Haram. Use the service judiciously and as per halal awareness to watch only halal content on Amazon prime.

Conclusion

Are we in state to tell Is Netflix Stock Halal or Haram? Well, financially if we see somewhere Netflix stocks are haram while at some financial calculations Netflix Stocks are Halal. While if we see content served on platform it contains more than 5% of Non-Permitted Islamic content. And content is where from Netflix does business. This makes Netflix Stocks as Haram Being entertainment industry, it’s quite difficult to stay halal and do business.