Netflix recently announced its Q1 2024 earnings report. The streaming giant said it exceeded expectations in terms of subscriber growth, gaining 9.33 million subscribers during that time, reaching around 270 million subscribers worldwide. However, despite beating Wall Street expectations, Netflix announced it would stop reporting subscriber numbers in 2025.
Although subscriber numbers did increase, Netflix’s stock price fell more than 4.5% in after-hours trading. Netflix said in its first quarter report to shareholders that engagement, measured by time spent on the platform, is “the best indicator of customer satisfaction.” Therefore, quarterly membership numbers and average revenue per member will no longer be reported. Netflix plans to announce “goals as we pass key subscriber milestones.”
Netflix continues to grow its subscriber base around the world, gaining 2.53 million customers in the U.S. and Canada in the first quarter of this year. Knowing that over time its subscriber numbers will start to plateau, the company wants to reorient investors to consider other metrics, such as watch time, as a way to judge success. There is. Co-CEO Greg Peters said the subscriber numbers aren’t very accurate because Netflix uses a paid sharing model that allows primary users to add “additional members” for an incremental fee. Ta. As far as advertising goes, Netflix aims to place more emphasis on viewing time and promote the idea that higher engagement leads to higher revenue per member.
Netflix will continue to share regional revenue breakdowns for each quarter and provide additional annual revenue guidance going forward. It remains to be seen how this will affect Netflix’s business plans in the future.
