Netflix keeps its subscribers a secret:
Starting from next year, Netflix will no longer disclose its subscriber count but will instead announce major subscriber milestone achievements. The streaming giant has decided on this shift because it believes that subscriber numbers alone don’t accurately reflect the company’s growth.
In a statement, Netflix explained its rationale: “In our early days, membership growth was a key indicator of our potential as we had little revenue or profit. However, now that we’re generating substantial profit and cash flow, along with exploring new revenue streams like advertising and additional member features, subscriber count is just one aspect of our growth. Furthermore, our pricing and plans have evolved into multiple tiers with varying price points across different countries, each affecting the business differently.”
This change poses a challenge for investors, especially since Netflix’s stock has been struggling, and now they won’t have subscriber numbers to track the company’s progress.
Two years ago, Netflix publicly revealed a loss of one million subscribers, prompting investors to shift focus from subscriber numbers to profits.
This quarter, Netflix reported impressive earnings, with $2.3 billion in profit on $9.4 billion in revenue, marking a significant turnaround after years of losses.
Netflix isn’t the only company adopting this strategy; tech giants like Google have also refrained from disclosing certain business metrics, contributing to their stocks reaching record highs. By prioritizing profitability over subscriber count, Netflix aims to provide investors with a more comprehensive understanding of its business performance and future prospects.
