Netflix will stop reporting quarterly subscriber numbers starting with its first- quarter 2025 earnings, as the company says it’s more focused on other metrics.
Additionally, the streaming giant said Thursday that it would stop reporting average revenue per member, which it refers to as ARM. The company had already stopped providing guidance on paid membership numbers starting in 2023.
In the company’s earnings report, Netflix said the decision came amid rising profit numbers.
“As we’ve noted in previous letters, we’re focused on revenue and operating margin as our primary financial metrics — and engagement (i.e. time spent) as our best proxy for customer satisfaction. In our early days, when we had little revenue or profit, membership growth was a strong indicator of our future potential. But now we’re generating very substantial profit and free cash flow (FCF),” the earnings release reads.
“We are also developing new revenue streams like advertising and our extra member feature, so memberships are just one component of our growth.In addition, as we’ve evolved our pricing and plans from a single to multiple tiers with different price points depending on the country, each incremental paid membership has a very different business impact.”
The company will continue to release breakouts of revenue by region each quarter as well as the F/X. Additionally, Netflix will also start to provide annual revenue guidance.
“We’ll also announce major subscriber milestones as we cross them,” the company said.
The announcement arrives amid growing subscriber numbers and profits at Netflix. In the first quarter, the company added 9.3 million subscribers, to reach 269.6 million global subscribers, expanding its already large lead over the competitors. Netflix reported revenue of $9.4 billion and operating income of $2.6 billion, both up substantially from a year earlier.
Netflix already has a lead over its competitors in terms of subscribers, with competitor Disney+ reporting a base of close to 150 million. The company’s numbers have also been increasing amid its crackdown on password sharing, in which borrowers can be converted to new users.
However, moving away from the subscriber metric is also significant, as it had been a focus area for Wall Street early in the streaming wars, and can remain so, particularly when profits are not yet in sight.
FAQs
April 18, 2024 | Netflix will stop reporting quarterly subscriber numbers starting with its first- quarter 2025 earnings, as the company says it's more focused on other metrics. Additionally, the streaming giant said Thursday that it would stop reporting average revenue per member, which it refers to as ARM.
Why Netflix is going to stop telling the world how many subscribers it has? ›
What's the rationale for the change? Netflix says it's because it no longer thinks subscriber growth is a good way to understand the company's progress — something it has been saying for some time in its investor letters.
Is Netflix losing customers in 2024? ›
Quarterly Netflix subscribers count worldwide 2013-2024
Netflix had around 277.65 million paid subscribers worldwide as of the second quarter of 2024. This marked an increase of over eight million subscribers compared with the previous quarter.
Did Netflix lose subscriber count? ›
The company reported losing an estimated one million users worldwide in the second quarter of 2022, with the. But why have audiences canceled their subscriptions? One reason for the unprecedented drop in account holders is Netflix's monthly fee, which has been increasing rapidly over the past few years.
How can Netflix continue to be an industry leader with an increasing number of streaming services? ›
With classic and original content as the highest rated content, it is important that Netflix continues to offer all their original shows and movies as well as old favorites. Disney+ will potentially have a huge effect on which streaming platform people choose because of the classic content.
Why are people wanting to cancel Netflix? ›
See why #CancelNetflix is trending after a $7million political endorsem*nt. Social media is blazing with calls to boycott California-based Netflix after its executive chairman, Reed Hastings, donated $7 million to a super PAC supporting Vice President Kamala Harris' presidential campaign, according to Variety.
Will Netflix stop reporting subscriber numbers starting in 2025? ›
Netflix made a surprise announcement in reporting its (very good) first-quarter 2024 results this week: The streaming TV powerhouse will stop reporting quarterly subscriber figures starting in 2025.
How many devices can I watch Netflix on one account? ›
Note:After stopping Netflix on a different device, you may need to wait 5-10 minutes before you can watch on your device. Or, upgrade your Netflix plan to allow more devices to watch at the same time (up to 4 with the Premium plan).
Who is Netflix's target audience? ›
Netflix's target market is young, tech-savvy users and anyone with digital connectivity. The audience of Netflix is from diverse age groups and demographics. However, most of the audience are teenagers, college-goers, entrepreneurs, working professionals, etc.
Who owns Netflix right now? ›
Currently, Netflix is owned by a mix of insiders, such as co-founder Reed Hastings and Chief Legal Officer David Hyman, as well as some of the biggest asset management companies in the world, such as BlackRock and the Vanguard Group.
Standout content, global availability, live events, video games and reliability make it a winner.
Is Netflix losing subscribers because of password sharing? ›
Netflix added almost 30 million subscribers in 2023 after cracking down on password sharing in May. Customers balked at the idea, but in the end Netflix prevailed. Netflix also could roll out more subscription tiers to add more subscribers, economist says.
Which streaming service has the most subscribers? ›
Netflix dominates as the most subscribed to video streaming service, with 260.28 million subscribers.
- United States and Canada: Representing nearly 31% of total subscribers with 80.13 million.
- Europe, the Middle East and Africa: Accounting for about 34% with 88.81 million subscribers.
More
- Best Overall: MAX »
- Best for Variety: Netflix »
- Best for Kids: Disney+ »
- Best With Available Live TV Option: Hulu »
- Best for NBC Programming: Peaco*ck »
- Best for Amazon Prime Members: Amazon Prime Video »
- Best for High Quality Shows and Movies: Apple TV+ »
- Huge Selection of On-Demand and Live Content Fubo »
The so-called streaming wars are over, they say. Netflix has won. As evidence, they point to rival studios that are now licensing more of their programmes to Netflix, including HBO's Six Feet Under and Insecure, after years of holding on to their big action movies and popular shows for their own platforms.
Who is Netflix's competitor? ›
Competitors like Disney+, HBO Max, and Amazon Prime Video are vying for viewers' attention. Netflix, however, remains a dominant force in the industry, constantly evolving and adapting to stay ahead of the curve.
Will Netflix stop disclosing subscriber numbers next year? ›
Now, Netflix says it will stop reporting subscriber numbers and average revenue per user from the first quarter of 2025. Peters explained during the earnings call: “We've also evolved our pricing and plans with multiple tiers, different price points across different countries.
How many subscribers does Netflix have in the world? ›
Conclusion: Netflix Has 277.65 Million Users Worldwide
Netflix, being the most popular social media platform worldwide, has managed to attract a large share of users worldwide. At the same time, it is the most preferred SVOD platform in the United States, with 22% of the SVOD market share in the country.
Is Netflix not reporting subs? ›
Netflix will no longer report subscriber numbers — which has been a key metric for streaming services for years — beginning with the first quarter of 2025. The company made the announcement in releasing its first-quarter 2024 earnings Thursday.
What is the future outlook for Netflix? ›
The streaming giant said it is looking for full-year revenue to grow 14% to 15%, up from 13% to 15% previously. It also sees some strength being offset by the stronger dollar compared to most other currencies. Further, Netflix expects a slight improvement in its operating margins for 2024.
