Netflix Stock Ticks Up On Earnings Beat: Streamer Stresses Engagement As It Plans To Stop Reporting Quarterly Subscriber Numbers Next Year

deadline.com:

Netflix shares are up close to 4% in after-market trading as the company’s third-quarter numbers beat on the bottom line and subscriber numbers – which the streamer will not routinely release on a quarterly basis starting next year.

The letter to shareholders that accompanies Netflix earnings did talk about engagement, an indication of what it might focus more on when that happens. “Engagement on Netflix is healthy: around two hours a day per paid membership on average, despite the impact of paid sharing,” said the letter, which co-CEO Ted Sarandos also noted at the kickoff of the quarterly earnings call. “As we’ve discussed before, paid sharing led to lower viewing on accounts that were shared as fewer people were watching on them.

In addition, when sharers bought their own subscriptions, much of that viewing was already reflected in hours viewed (impacting the trend in view hours per membership).

When you isolate owner households (which excludes the impact of paid sharing), view hours for those owner households rose year over year in the first three quarters of 2024,” Netflix said.