STORY: Netflix announced Thursday that it will stop reporting quarterly subscriber numbers. It suggests that years of winning customers in the streaming wars may be coming to an end.
The streaming giant’s stock fell after it reported a slew of new customers in the first quarter, but gave revenue estimates that fell short of analysts’ targets.
Shares fell more than 4% in after-hours trading.
Netflix said its ad-supported streaming plans added more than 9 million customers, reaching nearly 270 million customers worldwide by the end of March.
Company executives are urging investors to focus on revenue and operating margins rather than customer growth going forward.
But analysts said the decision to stop reporting quarterly subscribers would upset investors and make it difficult for Wall Street analysts to evaluate the company’s business.
Netflix’s stock price has risen nearly 90% over the past year, putting it well ahead of rivals such as Disney, which continues to lose money in its streaming business.
Other platforms, such as Facebook and X, have stopped reporting metrics equivalent to subscriber numbers as growth slows.
