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Netflix Adjusts Strategy: No More Subscriber Counts from 2025

Netflix has announced that starting in the first quarter of 2025, it will stop reporting quarterly subscriber numbers. This shift comes as the company focuses more on metrics like revenue and engagement.

Netflix also plans to stop disclosing average revenue per member (ARM). It had already ceased providing paid membership guidance in 2023. The company cites rising profits as a reason for the change.According to Netflix’s earnings report, the company prioritizes revenue and operating margin as key financial metrics. Engagement, measured by time spent, serves as a key indicator of customer satisfaction.

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Netflix is exploring new revenue streams such as advertising and additional member features. Memberships are now just one part of its overall growth strategy, and its pricing and plans have evolved to include different tiers with varied price points based on the region.The company will continue releasing regional revenue breakdowns each quarter and plans to provide annual revenue guidance. Netflix will also announce major subscriber milestones as they are reached.

In the first quarter, Netflix added 9.3 million subscribers, reaching a total of 269.6 million global subscribers. Revenue increased to $9.4 billion, and operating income rose to $2.6 billion, both significantly higher than the previous year.

Netflix leads its competitors in subscriber count, with Disney+ boasting nearly 150 million subscribers. The company has seen an uptick in subscribers thanks to efforts to curb password sharing and convert borrowers into paying users.

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Moving away from the subscriber metric represents a notable change, as it was a key focus for Wall Street during the early days of streaming. This shift highlights Netflix’s confidence in its growth trajectory and evolving business model.

 

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