V-ECON Audit: Netflix

Supply Chain & Sourcing Relationships

Netflix operates Open Connect Appliances (OCAs) embedded within Israeli ISP networks, representing the primary delivery mechanism for streaming content in Israel. The CDN infrastructure includes Partner Communications (7 IPs), Bezeq International (9 IPs), Cellcom (5 IPs), and nine additional providers ¹. Netflix launched its streaming service in Israel in January 2016 as part of a 130-country expansion, with full subscription service including Hebrew language interface, local currency (ILS) pricing starting at ILS 29.9/month, and Israeli content launching in July 2017 ²³.

Partner Communications serves as Netflix’s first Israeli distribution partner, having launched Netflix via Partner TV set-top box in 2017. Partner Communications holds over 200 active cellular antennas on occupied land in the West Bank (including East Jerusalem) and Syrian Golan. The company pays rental and land use fees to settlements including Beit El (thousands of shekels monthly) and Migron outpost (for 12 years). Partner’s license to serve settlers in the occupied West Bank is valid until January 2027 ⁴. No evidence has been identified of Netflix maintaining direct commercial relationships with Israeli agricultural aggregators or exporters such as Mehadrin, Hadiklaim, Galilee Export, or Agrexco, consistent with Netflix’s business model as a streaming service rather than a physical goods retailer.

Product Origin, Labeling & Regulatory Compliance

No public evidence identified regarding Netflix sourcing or distributing physical products subject to country-of-origin labeling regulations, as Netflix operates as a streaming service providing digital content rather than physical goods.

Investment, Capital & Financial Exposure

Netflix’s 10-K subsidiary list filed with the SEC shows entities in the United States, Netherlands, United Kingdom, France, Germany, Italy, Spain, Japan, Singapore, Australia, Brazil, Mexico, Canada, and South Korea, with no Israeli entity identified ⁵⁶. Netflix’s career page lists engineering hubs in the United States and Poland (Warsaw) only, and Netflix’s office location database shows 30 offices globally with none located in Israel ⁷. Netflix’s acquisition history from 2020-2024 shows no Israeli technology or media companies among its targets; acquisitions include Next Games (Finland), Animal Logic (Australia), Boss Fight Entertainment (US), Spry Fox (US), and Thinkin (France) ⁸.

No public evidence identified of Netflix holding direct investments in Israeli sovereign bonds through corporate treasury operations in SEC filings or corporate disclosures. Netflix is not listed on the Norwegian Government Pension Fund Global exclusion list ⁹, and Netflix is not listed in the UN OHCHR Database of Business Enterprises involved in Israeli settlement activity ¹⁰.

Operational Presence & Market Activity

CEO Reed Hastings stated in January 2016 that “our corporate strategy is not to open offices in more places, and we are not planning such in Israel,” confirming Netflix maintains no corporate offices in the country ². Netflix launched streaming in Israel in January 2016 and expanded to full subscription service with Hebrew language, local currency, and Israeli content in July 2017 ²³. Netflix operates Open Connect CDN infrastructure physically present in Israel through ISP partnerships rather than owned data centers ¹. Netflix’s 10-K does not break out Israel as a separate geographic segment; revenue is reported only for aggregate regions such as Europe, Middle East, and Africa ⁶.

Corporate Structure & Foundational Ties

Netflix was founded in the United States (California) with headquarters in Los Gatos, California, and maintains no Israeli tax residency or Preferred Technology Enterprise (PTE) status ⁵. Mathias Döpfner has served on Netflix’s Board of Directors since March 2018 ¹¹. Döpfner is CEO and 22% shareholder of Axel Springer SE ¹². Axel Springer’s Yad2 Israeli classifieds platform publishes approximately 1,300 property listings in West Bank settlements, with over 1,000 being paid broker advertisements, generating profits from Israeli settlements ¹³. Mathias Döpfner received the Israeli Presidential Medal of Honor in October 2025 from President Isaac Herzog for his “unique contribution” to Israel, described as “one of the most prominent and courageous voices in Europe in the longstanding fight against antisemitism and a staunch supporter of the state of Israel” ¹⁴¹⁵.

Profit Repatriation & Economic Contribution

No public evidence identified of Netflix disclosing revenue generated specifically from the Israeli market in SEC filings ⁶. No public evidence identified of Netflix paying corporate taxes to Israeli tax authorities; Netflix operates as a foreign service provider without Israeli corporate registration.

Netflix has licensed multiple Israeli series including “Fauda” (co-produced with yes TV), “When Heroes Fly” (Keshet International), “Shtisel,” and “Hostages” ¹⁶¹⁷¹⁸. Faraway Road Productions, co-founded by Lior Raz and Avi Issacharoff, holds an overall deal with Netflix ¹⁷. yes Studios produces Fauda, with filming locations in Israel including Kfar Qasim and Tze’elim IDF training zone (used as West Bank stand-ins) ¹⁹²⁰. Netflix’s Employee Giving Program offers 2:1 matching up to $10,000 annually to any 501(c)(3) organization, with volunteer grants of $50/hour; no Israel-specific charitable allocations were found in the program description ²¹. Netflix removed a “Palestinian Stories” collection with at least 19 titles around October 2024, stating the removal was due to expired license (2021-2024 three-year license) rather than political stance ²²²³.

End Notes