Current:Home > MyNetflix to stop reporting quarterly subscriber numbers in 2025 -Aspire Money Growth
Netflix to stop reporting quarterly subscriber numbers in 2025
Rekubit View
Date:2025-04-07 18:16:24
Love isn't the only thing that's blind at Netflix. Touting a blockbuster 9.3 million added subscribers in its first quarter earnings report Thursday, the streaming giant also revealed that it would stop sharing quarterly membership numbers starting in 2025.
"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," a letter to shareholders read. "We are also developing new revenue streams like advertising and our extra member feature, so memberships are just one component of our growth."
Netflix also announced another metric would be left off of reports in 2025 — ARM, or average revenue per membership, defined as "streaming revenue divided by the average number of streaming paid memberships divided by the number of months in the period," per the letter.
"Ultimately we think this is a better approach that reflects the evolution of the business," Co-CEO Greg Peters said on an earnings call, referencing the company's shifting priorities from member growth to revenue and profit.
After enjoying steady subscriber growth for years, Netflix lost 200,000 subscribers at the start of 2022, and by July of that year, it had lost almost a million more. Following an accompanying stock price dive, the streamer launched a cheaper, ad-supported plan and netted almost 9 million subscribers from the previous year by the end of 2022.
Subscriber growth increased each quarter in 2023 — the same year Netflix cracked down on password sharing and hiked prices for some of its customers — with another 13.1 million added by the end of the year. The streamer tacked on another 9.3 million in the first quarter of 2024, according to the most recent earnings report.
"Why we focus on engagement is because we believe it's the single best indicator of member satisfaction with our offering," Co-CEO Ted Sarandos said on the call. "Happy members watch more, they stick around longer, they tell friends, which all grows engagement, revenue, and profit — our north stars."
The streamer is also moving into live sports, acquiring the rights to begin airing WWE Raw in 2025 and exclusively broadcasting social media star Jake Paul's boxing match with Mike Tyson in July.
Deadline reported earlier this month a small number of layoffs were expected as the company reorganized its film department.
- In:
- Netflix
- Television
- Live Streaming
Rishi Rajagopalan is a social media associate producer and content writer for CBS News.
veryGood! (79668)
Related
- Jamie Foxx gets stitches after a glass is thrown at him during dinner in Beverly Hills
- YSE Beauty by Molly Sims Is Celebrity Skincare That’s Made for You
- Google turns 25, with an uncertain future as AI looms
- The next presidential campaign is coming into focus. It might look a lot like the last one.
- Nearly 400 USAID contract employees laid off in wake of Trump's 'stop work' order
- Amid dispute with Spectrum, Disney urges cable viewers to switch to its Hulu+ service
- No. 22 Colorado off to flying start by following lead of unconventional coach Deion Sanders
- Conservative book ban push fuels library exodus from national association that stands up for books
- DoorDash steps up driver ID checks after traffic safety complaints
- Here's why the US labor movement is so popular but union membership is dwindling.
Ranking
- Are Instagram, Facebook and WhatsApp down? Meta says most issues resolved after outages
- Watch: 3-legged bear named Tripod busts into mini fridge in Florida, downs White Claws
- Illinois School Districts Vie for Clean School Bus Funds
- Icebreaker, 2 helicopters used in perilous Antarctic rescue mission as researcher falls ill
- Justice Department, Louisville reach deal after probe prompted by Breonna Taylor killing
- First lady Jill Biden tests positive for COVID-19, but President Biden’s results negative so far
- Latest out of Maui: The recovery, rebuilding begins after deadly wildfires
- Lab data suggests new COVID booster will protect against worrisome variant
Recommendation
Dick Vitale announces he is cancer free: 'Santa Claus came early'
An equipment outage holds up United flights, but the airline and FAA say they’re resuming
World War I memorials in France and Belgium are vying again to become UNESCO World Heritage sites
Joe Jonas Says His Marriage With Sophie Turner is Irretrievably Broken
From family road trips to travel woes: Americans are navigating skyrocketing holiday costs
North Korean leader Kim Jong Un expected to meet with Putin
Linda Evangelista Shares She Was Diagnosed With Breast Cancer Twice in 5 Years
Gilmore Girls Secret: The Truth About Why Rory Didn’t Go to Harvard