• Netflix has grown into the world’s largest streaming service with more than 300 million subscribers worldwide.
• It’s come out on top in the streaming wars, and now plans to acquire Warner Bros. in a $72 billion deal.
• Here’s a look at Netflix’s rise and what’s next.

In the last two decades, Netflix has grown from a DVD company to the winner of the streaming wars — and now a major Hollywood acquirer.

Reed Hastings and Marc Randolph founded Netflix in 1997, launching its DVD rental business the following year. Netflix’s video streaming service debuted a decade later in 2007.

The rise of Netflix prompted competitors like Disney, Comcast, and more to launch their own rival services, kicking off the streaming wars. Netflix has remained dominant — and plans to grow larger still, striking a deal to acquire HBO Max and a slew of major film and TV franchises as part of a $72 billion acquisition of Warner Bros. Discovery.

Here’s how Netflix rose into a Hollywood behemoth.

1997: Netflix is founded by Reed Hastings and Marc Randolph.

Netflix was founded after Reed Hastings was charged a $40 late fee for an overdue rental from Blockbuster.

Blockbuster closed in 2014, while Netflix remains atop the entertainment industry.

1998: Netflix launches a DVD-by-mail rental service and former Amazon CEO Jeff Bezos offers to buy the company later that year.

In his book “That Will Never Work: The Birth of Netflix and the Amazing Life of an Idea,” Randolph wrote that he and Hastings met with Bezos in 1998, who offered them “probably something between $14 million and $16 million,” Randolph wrote. They turned down the offer.

1999: Netflix begins offering a subscription-based model, in which customers could choose movies to rent-by-mail for a monthly fee.

Netflix gained 239,000 subscribers in its first year, according to Inc.

2002: Netflix goes public. Randolph exits the company soon after.

“As you get older, if you’re lucky, you realize two things: what you like, but also what you’re good at,” Randolph told Forbes in 2019 on why he left Netflix. “The answer to both of them [for me] is early-stage companies. I like the chaos. I like the fact that you’re working on hundreds of things at once.”

2007: Netflix launches a video streaming service, free for its already-existing DVD-rental subscribers.

Netflix ended 2006 with over 6 million subscribers for its DVD-rental service.

The company’s stock dropped 6% with the announcement. But Hastings, who was CEO at the time, said that he had “gotten used to” reservations.

2012: Netflix debuts “Lilyhammer,” its first original series.

The show was originally broadcast in Norway, but Netflix acquired the rights. It laid the foundation for Netflix’s binge-release model and its surge in original programming, including expanding into international markets.

“This was the first time we streamed a show across multiple countries and languages … and it worked,” Netflix’s current co-CEO Ted Sarandos wrote in a blog post in February 2022.

2013: Netflix ramps up its original programming.

“House of Cards” and “Orange Is the New Black” are quickly become smash hits for Netflix, gaining critical acclaim and Emmys recognition.

2015: Netflix releases its first original feature film, “Beasts of No Nation.”

The Cary Joji Fukunaga film, which was shot in Ghana, was the first of its kind to be released only on Netflix.

2017: Netflix surpasses 100 million subscribers.

Netflix hit 100 million subscribers 10 years after it launched its streaming service.

2018: Netflix wins its first feature-film Oscar: best documentary feature for “Icarus.”

Later in 2018, Netflix releases “Roma,” which becomes the streamer’s first best-picture nominee the following year.

Netflix has yet to nab the Oscars’ top prize, though, despite elaborate campaign spending. Apple TV+ won best picture for “CODA,” becoming the first streaming platform to do so.

2020: Netflix names Ted Sarandos, its creative chief, as co-CEO with Hastings

Ted Sarandos and Reed Hastings have known each other since 1999. (You can read about how Sarandos nailed his original job interview with the company here.)

January, 2021: Netflix announces that it surpassed 200 million subscribers.

It took Netflix ten years to get its first 100 million subscribers — and under four years to double it.

September 2021: Netflix wins more Emmys than any network or streaming service for the first time.

Netflix nabbed best-series wins for the first time with “The Crown” (drama) and “The Queen’s Gambit” (limited series).

October 2021: Netflix faces its most public controversy yet, after some employees speak out against Dave Chappelle’s Netflix special, “The Closer,” in which he makes comments many criticized as transphobic.

Chappelle said in the special that “gender is a fact” and defended “Harry Potter” author J.K. Rowling, who came under fire for past transphobic comments.

Sarandos defended Chappelle in a memo to employees, saying in part: “Chappelle is one of the most popular stand-up comedians today, and we have a long standing deal with him. His last special, ‘Sticks & Stones,’ also controversial, is our most watched, stickiest, and most award winning stand-up special to date.”

Netflix trans employees planned a walkout in response to the special and Sarandos’ comments.

November 2021: Netflix launches its first video games around the world.

Netflix’s video games launch was free as part of a user’s subscription.

April 2022: Netflix reports that it lost subscribers for the first time in a decade in the first quarter of 2022.

Aside from the economic strains of the coronavirus pandemic, Netflix blamed the subscriber loss partly on password sharing. It said that it estimated that an additional 100 million people use Netflix with a shared password. 

It also acknowledged increased competition. New streaming services like Disney+, HBO Max, Paramount+, and more entered the space on top of already existing rivals like Hulu and Prime Video.

April 2022: Hastings confirms that an ad-supported tier is coming to Netflix.

Hastings confirmed during Netflix’s April 2022 earnings call that the company plans to roll out an ad-supported plan — something it has pushed back against in the past — as the streaming service faced slowing revenue growth and lost subscribers.

Other streamers have, like HBO Max and Paramount+, have embraced ads. Disney+, Netflix’s biggest rival, has also launched an ad-supported option.

July 2022: Netflix loses subscribers for the second quarter in a row, a first for the company.

In Q2 2022, Netflix said it lost 970,000 subscribers, a sign of company’s struggles that further underscored why it was introducing an ad-based plan and cracking down on password sharing. 

November 2022: Netflix officially launches its ad-supported plan.

When the ad program launched, the streamer said it was nearly sold out of inventory.

December 2022: Netflix ended 2022 strong, breaking Q4 targets.

The end of 2022 represented a bit of a bounce back for Netflix, as the entertainment company outpaced subscriber growth for the quarter by around 3.1 million, adding 7.66 new subscribers despite its own estimates of 4.5 million.

In total the streaming giant amassed 230.75 million subscribers by the end of 2022.

Netflix noted that after a decade into making original content, it was “past the most cash-intensive phase of this buildout.”

January 2023: Netflix cofounder Reed Hastings steps down as co-CEO and is replaced by Greg Peters, who was serving as COO.

Reed Hastings spent 26 years leading Netflix, ushering it through an IPO and the growth of its streaming options.

April 2023: Netflix announces its final red envelope DVDs will be shipped out in September 2023.

Netflix announced it would end its DVD-rental services on September 29, 2023. It marked the end of a 25-year chapter for the business, which became known for its red envelopes.

January 2024: Subscriptions soar amid password crackdown as Netflix pushes into live sports.

Netflix began cracking down on password sharing in 2023, a move that – along with offering a cheaper, ad-supported subscription tier – helped it add new subscribers and deliver blowout earnings throughout 2024, quarter after quarter.

Netflix made a costly push into live sports content with a $5 billion deal for a weekly WWE show in the US, and to air other one-off pro wrestling events globally. The content will start rolling out in early 2025.

Netflix’s former firm chief Scott Stuber also left the company in January 2024. He was later replaced by Dan Lin, who has reportedly sought to implement a new strategy that shifts away from big-budget action films fronted by marquee stars.

November 2024: Netflix shares stellar growth stats for ad-supported subscriptions — and pushes further into live sports.

In November 2024, Netflix’s ad business turned two years old. It announced it had 70 million ad-supported subscribers — up from 40 million the previous May — and said that more than half of new sign-ups were for ad-supported plans in countries where the option is available.

Netflix made another massive foray into live sports content in November, streaming a highly anticipated boxing match between Jake Paul and Mike Tyson, which drew a record-breaking 65 million concurrent viewers globally though the stream was beset by technical difficulties.

Netflix also streamed its first-ever NFL game on Christmas Day, following a previously announced pact with the NFL to carry holiday games through 2026. The spectacle featured Beyoncé performing at halftime as the Houston Texans faced off against the Baltimore Ravens.

January 2025: Netflix raises the price of its standard plan to $17.99 a month.

Netflix announced a price hike in mid-January, raising its standard plan to $17.99 a month, up from $15.50. The premium plan with 4K video, which was previously $23 a month, rose to $25.

The company also lifted its ad-supported tier from $7 to $8 a month.

Netflix last raised its prices in October 2023. The move was aligned with similar increases at YouTube TV and Disney.

May 2025: Netflix updates its homepage design for the first time in a decade.

In an effort to cut down decision fatigue, Netflix refreshed its homepage design for the first time in a decade.

The new homepage promoted live events, used AI search, and enabled viewers to find what they wanted more quickly, executives said in a blog post and presentation previewing the changes.

The change also included a vertical video feed with clips of Netflix shows that can be tapped to watch immediately.

August 2025: “K-Pop Demon Hunters” is a smash success — and gets a theatrical run.

Netflix’s animated musical “K-Pop Demon Hunters” became its biggest movie ever.

The Netflix original, produced by Sony Animation, generated 236 million views in just 65 days. Analysts said that the movie provided a path for Netflix to compete with Disney in the family animation market.

While the streamer has been hesitant about theatrical releases, Netflix put “K-Pop Demon Hunters” in theaters for a sing-along experience.

October 2025: Netflix makes its official move into video podcasting with a Spotify partnership

For much of 2025, Netflix teased a push into video podcasting. The streamer once courted “Call Her Daddy” host Alex Cooper. Then, it struck a deal.

Netflix announced a partnership with Spotify in October, which would bring video versions of Spotify-owned The Ringer and Spotify Studios podcasts to the platform. These included “The Bill Simmons Podcast,” “The Rewatchables,” and “Conspiracy Theories.”

The podcasts will be available on Netflix in early 2026, per the deal, and will be removed from YouTube.

November 2025: The first Netflix House opens outside of Philadelphia.

Netflix doesn’t have a theme park like Disney, but it does have a permanent installation at the King of Prussia mall.

The first-ever Netflix House opened in November outside Philadelphia. The location reimagined Netflix hits like “Wednesday” and “One Piece” into hands-on activities.

More locations are set to open in Texas and Las Vegas.

December 2025: Netflix agrees to buy Warner Bros. for $72 billion.

In a deal widely expected to shake up Hollywood, Netflix agreed to buy the studio and streaming businesses of Warner Bros. Discovery in a $72 billion deal. It is Netflix’s biggest acquisition in history.

In the deal, Netflix is planning to buy HBO Max and the top-performing Warner Bros. studio, but not WBD’s TV networks like CNN, TNT, and TBS.

Netflix competed against Paramount Skydance and Comcast for the acquisition.

“People across WBD have navigated extraordinary change over the last three years, while building a company with real creative, journalistic, and commercial strength,” WBD CEO David Zaslav wrote in a memo to staff about the deal. “That deserves to be acknowledged plainly.”

• A US Navy aircraft carrier made a hard turn to avoid enemy fire, sending a fighter jet overboard.
• The maneuver to avoid the Houthi missile attack surprised sailors, the investigation shows.
• The F/A-18’s brakes weren’t working properly, and it fell into the Red Sea along with a tow tractor.

A US Navy aircraft carrier’s hard evasive turn to avoid enemy missile fire caught crewmembers off guard and sent a $60 million F/A-18 Super Hornet rolling off the deck and into the Red Sea, an investigation into the fighter jet loss revealed.

The fighter’s brakes weren’t functioning properly, investigators found, allowing the jet to slide across the deck when the carrier USS Harry S. Truman abruptly changed course during the late April action.

Poor communication, bad brakes, and a slippery surface all contributed to the loss.

A tow tractor also fell into the water alongside the expensive F/A-18 fighter jet, the second of three that the Truman lost during a monthslong Middle East combat deployment. When it went over, it nearly took sailors overboard as well.

Evading enemy fire

During their deployment, the Truman and its strike group led Navy combat operations against the Houthis, the heavily armed Iran-backed rebel group in Yemen that spent more than a year attacking key Middle East shipping lanes.

On April 28, the move crew lost control of an F/A-18 under tow in the Truman’s hangar bay, a maintenance area below the flight deck, the Navy reported at the time, and both the jet and its tow tractor tumbled into the Red Sea.

Right before it fell in, a sailor jumped from the cockpit, suffering minor injuries. The Navy didn’t share information or insight into the warship’s situation at the time of the plane loss.

According to the command investigation, the fighter jet and the tractor fell overboard while the Truman was conducting evasive maneuvers to avoid an incoming medium-range ballistic missile fired by the Houthis, a detail that had been reported but not confirmed at the time.

The move crew, which was preparing the F/A-18 from Strike Fighter Squadron 136 (VFA-136), the “Knighthawks,” for planned flight operations, didn’t hear the announcement that the ship was making a hard turn and was caught unaware when the ship began to tilt.

Sailors had removed the chocks and chains to pull the F/A-18 into the hangar bay. With the brakes engaged but not actually working, there was nothing to hold the aircraft in place when the carrier heeled in an evasive turn.

It slid backward toward the deck edge, dragging the tow tractor behind it. The crew moving the Super Hornet abandoned their posts just before the fighter jet fell into the sea.

Bad brakes

The command investigation put the blame for the incident primarily on the fighter jet’s inadequate brake engagement and the lack of communication from the Truman’s bridge to flight deck control and the hangar bay.

Leadership also said that the non-skid, a rough, high-friction coating applied to the decks of Navy ships to keep people, vehicles, and aircraft from slipping on smooth steel surfaces, was ineffective, having not been replaced since 2018.

These problems, the investigation said, cost the Navy an F/A-18, a multirole fighter made by the US aerospace giant Boeing that has been in service with the Navy for decades.

The April incident was one of four major mishaps that the Truman and its strike group suffered during their deployment.

In December, the cruiser USS Gettysburg accidentally shot down one of the Truman’s F/A-18s in what the military described as a friendly fire incident. In February, the carrier collided with a cargo ship. And in May, the ship lost its third fighter jet after a landing failure caused it to slide off the flight deck and plunge into the sea.

• A US Navy warship fired missiles at two American F/A-18 fighter jets above the Red Sea last year.
• The warship mistook the fighter jets for Houthi cruise missiles, the investigation shows.
• One of the fighter jets was shot down. The other barely survived the friendly fire incident.

A US Navy pilot whose jet was mistakenly shot down by an American warship over the Red Sea told investigators he saw his life flash before his eyes before ejecting from the doomed aircraft.

The command investigation into the late December 2024 friendly fire incident, which Business Insider reviewed prior to its release on Thursday, reveals that the warship’s crew mistook two Navy F/A-18 Super Hornet fighter jets for anti-ship cruise missiles fired by Houthi rebels in Yemen.

In a catastrophic failure, the cruiser USS Gettysburg launched surface-to-air missiles at both F/A-18s, shooting down one and nearly hitting the second. It also targeted a third friendly aircraft but never pulled the trigger.

A hit and a near-miss

The Gettysburg and the other warships in the strike group led by the aircraft carrier USS Harry S. Truman deployed in September 2024 and entered the Red Sea three months later to take over Navy combat operations against the Iran-backed Houthis, who had for almost a year at that point been attacking key shipping lanes.

Early on December 22, just seven days after entering the Red Sea, the Gettysburg accidentally shot down a Super Hornet from the Truman’s air wing in what the US military described as “an apparent case of friendly fire.” Both aviators, the pilot and the weapons officer, ejected safely from the roughly $60 million fighter, part of Strike Fighter Squadron 11 (VFA-11), the “Red Rippers.”

The command investigation reveals that the friendly fire incident nearly resulted in a much larger disaster. While initial reports centered on the aircraft that was struck, the investigation reveals that a second narrowly avoided a catastrophic end, and a third was in the crosshairs.

As the first surface-to-air missile raced upward from the Gettyburg’s missile tubes, the pilot and weapons officer of the first jet assumed the weapon was chasing after a Houthi drone they hadn’t found, the investigation said.

They watched the missile climb and then suddenly change course. As the weapon rushed toward them, the pilot suddenly saw his life flash before his eyes, he told investigators. Seeing no other choice, the two-man team ejected just before the missile struck the plane.

In that chaotic moment, the Gettysburg fired another missile at a second American fighter jet. The aviators on board issued multiple mayday calls but opted to outmaneuver it rather than bail. The missile gave chase, course correcting in pursuit of the jet.

It narrowly missed, the jet shaking as it passed just a few feet away before burning out and exploding in the water.

A Navy helicopter commander who witnessed the incident told investigators his crew “saw the missile overhead and saw it flash.” They said there was no warning before the shot was taken.

The decision to shoot was ‘wrong’

As for what caused this disaster, the command investigation pointed to a series of failures, from shortcomings in the planning process to deficiencies in the Gettysburg’s combat systems, and noted that crew fatigue may have played a role.

Early in the deployment, the investigation said, the Navy identified “significant degradation” in the Gettysburg’s core interoperability system. Problems spanned network management, surveillance and tracking reporting, identification, mutual tracking, mission engagement, and weapons coordination.

During the first three months of the deployment, the Gettysburg and Truman were often separated. The cruiser had been fending off Houthi missiles and drones shortly before the friendly fire incident, and there appeared to be some confusion over whether the threat had concluded.

That said, the investigation assessed “the decisions to shoot were wrong when measured across the totality of information available” to Gettysburg’s commanding officer, who was constrained by a series of previous actions and decisions both in and beyond his control.

The captain had low situational awareness, and his combat information center team was unable to help him regain it, the investigation said.

This shootdown incident wasn’t the Red Sea battle’s only friendly fire incident, though it was the most serious. Earlier in the Red Sea conflict, in February 2024, a German warship accidentally targeted a US MQ-9 Reaper drone, but the missiles never reached it because the warship’s radar system suffered a technical malfunction.

The December 2024 friendly fire incident was one of four major mishaps that the Truman strike group experienced during its monthslong deployment in the Middle East.

The aircraft carrier collided with a cargo vessel in February and also lost two more F/A-18s to accidents — one fell off the side of the warship along with a tow tractor in April, and another experienced a failure while landing and slid off the flight deck in May.

In a statement Thursday, Vice Chief of Naval Operations Adm. Jim Kilby said that “the Navy is committed to being a learning organization,” adding that “these investigations reinforce the need to continue investing in our people to ensure we deliver battle-ready forces to operational commanders.”

• Pete Hegseth had a “unique” system installed to access his personal cell phone from inside his secure office, an investigation found.
• It’s unclear if the defense secretary’s setup violated Pentagon policy.
• The findings were part of the inspector general’s report on Hegseth’s use of Signal to share information on strikes.

Defense Secretary Pete Hegseth had his assistant install a “unique” system in his secure office at the Pentagon that allowed him to access and control his personal cellphone from inside, a new watchdog report says.

The findings are part of Pentagon Inspector General Steven Stebbins’ investigation into Hegseth’s use of the Signal app to share sensitive information about US airstrikes against Houthi rebels in Yemen earlier this year. The investigation concluded the secretary risked the safety of US military personnel.

The report, released Thursday, included a section stating that Hegseth’s junior military assistant, at the request of the secretary of defense, “requested and oversaw the installation of a unique capability through which the secretary could access and control his personal cell phone from inside his secure office.”

The tether system, for which photos of a prototype design were redacted in the report, was installed in late February 2025.

The system mirrored and accessed the content of the personal phone and connected a keyboard, mouse, and monitor via cable to the phone, which was located outside the office.

Within the Pentagon, especially for the officers of more senior officials, it’s not uncommon to find lockers or boxes for staff and visitors to store phones and other devices.

Department of Defense policy states that personal and government mobile devices, such as cellphones, are prohibited from secure spaces in the Pentagon, places like Hegseth’s office. The inspector general’s report concluded it could not be determined whether the unique system installed for the secretary met requirements because it was quietly removed by late April 2025.

Hegseth confirmed in a July statement to the Pentagon inspector general’s office that he requested the system.

“It is true that upon taking this job, I asked my comms team whether it was possible to get access to my personal cell phone in my office,” he said, explaining that aim was to “more easily receive non-official, communications during the workday.”

“The comms team,” the secretary said, “prepared a compliant solution that would allow me this access while also maintaining proper security.”

The Secretary of Defense Communications Team said the installed workaround was consistent with DoD information security requirements, as it didn’t physically violate the no-cellphones-in-a-secure-space rule, the investigation said.

The Pentagon didn’t immediately respond to Business Insider’s request for comment on the findings.

Stebbins’ investigation into Hegseth’s use of Signal for the Yemen strikes was launched after The Atlantic’s editor-in-chief Jeffrey Goldberg was inadvertently added to group chats where Hegseth shared sensitive information, classified details from a SECRET/NOFORN email, about the timing of the attacks and assets that would be used to execute them.

The inspector general concluded that Hegseth’s use of the messaging app put US forces at risk because, if the information had been intercepted by US adversaries, it could have endangered US military personnel.

While the secretary said in an earlier statement to the office that “there were no details that would endanger our troops or the mission,” the investigation concluded that “the secretary’s actions created a risk to operational security that could have resulted in failed US mission objectives and potential harm to US pilots.”

“I’m working because I have to. I don’t want to.” “I’m basically working seven days a week.” “I don’t want to fall into sedentary mode.” “I’m still full of energy. I’m still very much on my game.”

These are some of the stories we heard in interviews with nearly 200 Americans who continue to work past the age of 80. In 2025, Business Insider wrote more than 20 stories and produced a short documentary video — all examining why people over 80 continue to work well beyond the typical retirement age.

Older workers are the fastest-growing sector of the US labor force. Our “80 over 80” project examines the how and why.

Check it out below:

• Meta plans to cut its budget by up to 30% in its Reality Labs metaverse division.
• It’s considering job cuts as part of that move, leaving employees uncertain.
• The cuts may impact Horizon Worlds and follow a recent executive strategy meeting in Hawaii.

Meta is planning budget cuts and considering job cuts as part of that across its metaverse unit, according to a person familiar with the matter.

The company is considering budget cuts of up to 30% within its Reality Labs division, which could impact employees working on its virtual spaces platform, Horizon Worlds, according to the person Business Insider spoke to. The person requested anonymity because they’re not authorized to speak to the press on these matters.

Bloomberg earlier reported on the potential cuts.

The news follows a meeting last month at Meta CEO Mark Zuckerberg’s Hawaii compound, where he discussed strategy and next year’s plans with executives, the person familiar with the matter told Business Insider.

Internally, employees face uncertainty about whether the planned cost cuts will ultimately lead to layoffs. Directors are telling employees that most of the reductions will come from operating expenses, according to two other employees, who asked to remain anonymous because they’re not authorized to speak to the press. In addition to salaries, these expenses include payments made by Meta to third-party studios to create games for Horizon.

Meta declined to comment.

The overhaul comes on the back of Reality Labs racking up losses of over $60 billion since 2020 and Meta ramping up its AI spending this year in an increasingly competitive — and expensive — AI race.

Analysts at TD Cowen estimated that a cut of around 30% to Meta’s metaverse budget could translate into roughly $4 billion to $6 billion in cost cuts for Reality Labs in 2026.

BNP Paribas analysts said the reported reductions could lift their 2027 earnings estimates by as much as the high single digits — and even more if Meta trims spending across the rest of the company. They said that the moves show Meta is willing to pull back on some of its metaverse ambitions to focus on nearer-term AI opportunities, even as investors lack clarity on how much it will ultimately spend on AI infrastructure.

Meta’s stock rose as much as 4% Thursday morning, adding $69 billion to its market cap and bringing its total value to $1.68 trillion.

Meta’s metaverse metamorphosis

It’s not the first time that Meta has reorganized its metaverse unit. In October, it tapped Gabriel Aul, who led products for Meta Horizon, and Ryan Cairns, previously in charge of virtual reality hardware, to co-lead its metaverse efforts, according to an internal memo Meta CTO Andrew Bosworth wrote, which was obtained by Business Insider.

Vishal Shah, who helped lead Meta’s metaverse initiatives over the past four years, announced in a separate October memo that he is transitioning to Meta Superintelligence Labs. On Wednesday, Meta announced that it has hired Apple design leader Alan Dye to lead a new Reality Labs creative studio.

The company also cut an undisclosed number of Reality Labs employees in April as part of a broader restructuring effort. The cuts affected Oculus Studios, the company’s in-house gaming division for Quest headsets, as well as the team behind Supernatural, the VR fitness app that Meta acquired for over $400 million.

Bosworth previously described this year as the “most critical” to proving whether the metaverse is either a visionary feat or a “legendary misadventure,” he wrote in a November 2024 internal memo.

“We need to drive sales, retention, and engagement across the board but especially in MR,” he wrote at the time, referring to mixed reality. “And Horizon Worlds on mobile absolutely has to break out for our long-term plans to have a chance. If you don’t feel the weight of history on you, then you aren’t paying attention.”

The losses racked up by Reality Labs have drawn investor scrutiny. In Meta’s first-quarter earnings call, Evercore analyst Mark Mahaney asked whether Reality Labs losses would ever come down, and if so, why and when. Zuckerberg pointed to the rising momentum behind Meta’s Ray-Ban smart glasses, saying they’ve “really taken off” and just “tripled in sales” in the last year.

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