Netflix stated that he had obtained others nine million new subscribers in the last quarter, for a total of 269.6 million. At a certain point, however, the company will no longer reveal its members, at least not on a regular basis.
In his first quarter earnings reportNetflix announced that it would stop sharing subscriber numbers starting next year with its first-quarter 2025 earnings report. In the letter, Netflix says it wants to focus on revenue and operating margin, making them its primary financial metrics, and on engagement with content as a metric for defining customer satisfaction.
Also in its earnings, Netflix stated that revenues increased by 15% compared to the previous year.
The words of the co-CEO of Netflix
The Netflix co-CEO Greg Peters has explained:
“As we noted in the letter, we have evolved and will continue to evolve our revenue model, adding things like advertising and our additional member feature to the account. Things that are not directly tied to a number of members. We also have evolved our pricing and plans with multiple tiers in different countries I think these price levels they will become increasingly different. So, each new member has a different business impact, and all of this means that the simple historical calculation we’ve all done – the number of members times the monthly price – is less and less accurate in capturing the state of the business. This change is motivated by a desire to focus on the key metrics that we believe are most important to the company. For this reason, we will provide a report and guidance on revenue, OI, OI margin, net income, EPS, free cash flow.”
“We will be adding new annual guidance across a revenue range to give you a little more long-term vision. We won’t be completely silent about subscribers. We will update periodically as we grow and we will announce some important milestones, but it will not be part of our regular reporting. We want to do this thoughtfully and give everyone time to transition, so we’ll carry over subscribers through the first quarter of next year, which ties into our new annual revenue guidance for 2025.”
Speaking of the future of Netflix, we just discovered that the 5th season of The Witcher is the last and will be filmed together with the 4th.
