Netflix (NFLX -0.42%) made the recurring revenue strategy look dead simple: "Just" bill millions of people each month for a service that they aren't likely to cancel, reinvest the cash in generating more content for the customers to consume, then repeat the process forever, perhaps hiking prices once in a while along the way.
That model has worked wonders for Netflix, whose stock has soared 1,140% in the last decade.
As cryptocurrency gets its mainstream moment, Coinbase Global (COIN 6.94%) is positioning itself to run a similar playbook built on predictable, subscription-like cash flows from investors. Here's what you need to know.
Image source: Getty Images.
The membership flywheel is taking shape
The idea at the heart of Coinbase potentially becoming like Netflix is to turn user activity into a habit.
On that front, Coinbase's Coinbase One service is a paid membership with tiered benefits like zero fees for some trades, boosted staking rewards, and enhanced support, which could lead to consistent revenue that's independent from crypto trading fees. Coinbase's subscriptions and services segment reached $656 million in revenue during the second quarter of 2025.
Platform advantage also matters here, as it does with Netflix. Coinbase serves as custodian to a majority of new spot Bitcoin exchange-traded funds (ETFs), thereby expanding its institutional ties that can compound fee streams over time. And it's already the preferred cryptocurrency on-ramp for new investors, and for those looking to set up low-hassle dollar-cost averaging (DCAing) into key cryptoassets.
The catch
Investors hoping for Coinbase to become the Netflix of crypto should also know that its competition will soon include traditional financial institutions, which could make the process of becoming the chief platform much harder; Netflix's early competition was milder.
Therefore, if crypto adoption expands and its memberships, custody, and other economics keep scaling favorably, as they have been so far, Coinbase's flywheel could well resemble streaming's maturation. But, unlike what Netflix experienced, this business is going to need to maintain its lead against some big fish, and it'll likely need a competitive advantage of some kind to succeed in the long run.
