Netflix, which shares how many subscribers it has every quarter of the year, announced that it will stop doing this starting from 2025. Following the announcement, the company’s shares fell.
Netflix, which has long been the world’s most popular cinema and TV series platform, shared its data for the first quarter of 2024 last night. The company announced that its total number of subscribers increased by 9.33 million in the last three months. to 270 million He stated that he reached it. This revealed that it exceeded expectations.
However, this was not the only statement that attracted attention. US-based company, It will not disclose the number of subscribers starting from 2025 announced. Normally, it shared information about this data every three months.
Shares fell after the announcement
Netflix’s announcement that it would not increase the number of subscribers did not receive a positive response from investors. So much so that the company’s shares (NFLX) increased after it announced that it would not share the number of subscribers. down by 4.85% It dropped to $581. At the time of writing this news, it is trading at $611.
The number of subscribers is not that important anymore
In the letter it shared with shareholders, the company stated that the time spent on the platform was “The best indicator of customer satisfaction” and therefore will stop disclosing the number of subscribers as of the first quarter of 2025.
It is only now that the number of subscribers is important when revenue and profit are low. strong profit and free cash flow Adding that they have achieved success, the platform says that subscriptions are now just a “component” of their growth. Another reason why it no longer focuses on the total number is that revenue per subscriber may differ and one subscription tier may bring in more revenue than the other.
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We should point out that Netflix will not completely stop sharing the number of subscribers. Company, “When you cross major milestones” says he will announce these numbers.