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Netflix Will No Longer Release Subscriber Numbers As The Streaming Conflicts Fade

Netflix Will No Longer Release Subscriber Numbers As The Streaming Conflicts Fade
Unexpectedly, Netflix declared that it will no longer be releasing quarterly subscriber figures. This move is interpreted as a signal that years of user gains in the streaming battles are about to come to an end.
The pioneer of streaming video saw a decline in share price after reporting a substantial influx of new users in the first quarter, but its revenue projection fell short of analyst expectations. After hours, the stock was down 4.2% from its closing price, trading at $585.41.
According to Netflix, its ad-supported streaming options have brought in 9.3 million new users, almost twice as many as the analysts surveyed by LSEG had predicted. By the end of March, its total worldwide was 269.6 million as a result.
Executives at Netflix have advised investors to evaluate the company's performance based on revenue and operating margins rather than the number of new customers. Beginning with the first quarter of 2025, Netflix has announced that it will no longer reveal subscriber increases on a quarterly basis and will instead only do so in response to significant milestones.
"This change is really motivated by wanting to focus on what we see are the key metrics that we think matter most to business," co-Chief Executive Greg Peters said in a post-earnings video.
Analysts predicted that the decision to stop disclosing subscriber counts on a quarterly basis will annoy investors and make it more difficult for Wall Street analysts to model the company's operations moving forward. Additionally, they noted that it was unclear what would encourage new users to sign up after Netflix has attracted the greatest number of consumers from its crackdown on password sharing.
"It might be a few more quarters of paid sharing benefits, but we don't really know what the next catalyst will be after that for a member addition," said Magalie Grossheim, senior equity research analyst at M Science. "I think that's probably contributing also to why they're deciding to stop reporting those numbers."
As growth slowed, other firms also ceased releasing common data. For example, Meta's Facebook and social network X, formerly known as Twitter, stopped reporting monthly active users.
"The movement to no longer disclose quarterly subscriptions from next year will not go down well, more so given (subscriber) growth that the streaming king has seen over the last year," Paolo Pescatore, an analyst at PP Fores
In the last year, Netflix's stock has increased by 89%, outpacing rivals like Walt Disney, which continues to lose money on its streaming division.
Netflix stated in a letter to shareholders that it would expand its advertising business and try to enhance the range and calibre of its content in order to spur future growth.
After previously refusing to run ads, Netflix is getting ready to hold its second annual presentation to marketers in New York.
"Really excited" to present the future slate, co-CEO Ted Sarandos said, including the post-apocalyptic thriller "Sweet Tooth," fresh seasons of the historical drama "Bridgerton," and upcoming unscripted events like a roast of retired NFL quarterback Tom Brady.
"This presents a chance to reconnect with sponsors and examine the core elements of our product," which includes enhancements in measurement, according to Peters.
In November 2022, Netflix started to offer members ad-supported subscriptions at a price lower than that of commercial-free ones.
This offered an affordable choice for individuals impacted by Netflix's 2023 crackdown on password sharing, as it aimed to turn users of friends' or family members' accounts into subscribers.
According to the corporation, 40% of all new users in the areas where it provides the plan currently sign up for the ad-supported service.
Netflix exceeded analyst estimates of $4.52 in earnings per share for the months of January through March, coming in at $5.28.
During the period, when the service introduced titles including the murder thriller "Griselda" and the sci-fi drama series "3 Body Problem," revenue increased by 14.8% to around $9.4 billion.
With a 54% rise from the previous year, operating income came to $2.6 billion.
The business predicted revenue of $9.49 billion for the current quarter, falling short of the $9.537 billion analysts had predicted.
In order to cater to its enormous worldwide viewership, Netflix has been expanding its content. With a $5 billion, ten-year deal to stream WWE's wrestling programme, "Raw," beginning in January 2025, it is broadening its sports portfolio.
Sarandos refuted recent rumours that Netflix, under its recently appointed head of film, Dan Lin, intended to produce fewer, better films.
Sarandos stated, "To be clear, there is no appetite to make fewer films." “But there is an unlimited appetite to make better films, always. Naturally, we want to improve the fantastic films we have already done and are now working on."

Christopher J. Mitchell

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