Netflix is going beyond subscriber numbers. In its first quarter results released Thursday, Netflix announced that it will stop reporting quarterly membership numbers in 2025, as subscribers are just “one component” of the company’s growth. This change came after a quarter in which his subscribers increased by 9.3 million and worldwide he grew to more than 270 million members.
In the early days of streaming, subscriber numbers meant everything. This allows investors, studios, and everyone else to assess how well a streaming service is doing compared to its competitors, and Netflix maintains its lead in the field.
But now, Netflix says it’s flipping that idea on its head because it has multiple revenue streams that don’t rely solely on monthly subscriptions.
The letter to shareholders highlights “new” revenue streams, including advertising through ad-supported plans and paid sharing. “As we have evolved our pricing and plans from a single tier to multiple tiers with different price points based on country, each additional paid membership has a significantly different impact on our business,” Netflix told shareholders. stated in the letter. Additionally, streamers do not report average revenue per member on a quarterly basis.
Instead, Netflix says it will provide a quarterly breakdown of revenue by region and will reveal it when it reaches “key subscriber milestones.” “Streaming success starts with engagement,” Netflix writes. “When our viewers grow, they stay longer (retention), recommend Netflix more often (acquisitions), and place a higher value on our service.”
In other words, streaming is becoming more like cable. Rather than placing value on people signing up for its service, Netflix is betting that they will continue to subscribe and perhaps pay a fee to add additional members.
(Disclosure: Produced by Vox Media Studios) full swing, and The Verge I recently produced a series on Netflix. )
