By Streaming giant Netflix says it will no longer report subscriber numbers starting with the first quarter of next year.
The announcement was made as part of its first-quarter 2024 earnings report today with the streamer beating expectations and gaining a further 9.33 million subscribers (2.5M of which were from North America) to hit 270 million globally.
In addition it beat expectations on earnings, however investors likely weren’t happy hearing the news about the stopping of subscriber number reports as shares subsequently dropped nearly 5%.
Number of subscribers has been a key metric for all streaming services for years and Netflix says it will still announce “major subscriber milestones as we cross them,” but will no longer disclose them on a quarterly basis.
In addition, it will also no longer report on average revenue per member. Instead engagement, namely the amount of time users spend on the service, is being seen as the ‘best proxy for customer satisfaction’.
Despite some strong subscriber gains in various markets recently, these numbers are expected to plateau and the new metrics are being seen as where the streamer has more potential to grow in the future.
Additionally other revenue generation methods for them, from their password crackdown paid-sharing initiative and advertising revenue, aren’t tied to subscriber count.
Source: Variety
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