Netflix Shocker – Streamer Will Stop Reporting Quarterly Subscriber Numbers In 2025

deadline.com:

Netflix said today it will stop reporting quarterly subscriber numbers starting in 2025, a huge change for the giant streamer whose stock tends to get buffeted up or down (mostly up lately) by those numbers.

In a letter to shareholders along with first-quarter earnings, the company said it’s now focused on other metrics and that memberships “are just one component of our growth.” It will still announced subscriber “milestones” but nothing on a regular basis. “As we’ve noted in previous letters, we’re focused on revenue and operating margin as our primary financial metrics — and engagement (i.e.

time spent) as our best proxy for customer satisfaction. In our early days, when we had little revenue or profit, membership growth was a strong indicator of our future potential.

But now we’re generating very substantial profit and free cash flow (FCF). We are also developing new revenue streams like advertising and our extra member feature, so memberships are just one component of our growth,” the letter said. “In addition, as we’ve evolved our pricing and plans from a single to multiple tiers with different price points depending on the country, each incremental paid membership has a very different business impact.