Netflix reported strong profit growth thanks to its crackdown on password sharing and its ad-supported tariff, but will stop publishing subscriber numbers, focusing instead on revenue and viewing time.
Netflix's financial position
Profitability growth
Streaming service leader Netflix presented a quarterly report showing a significant increase in profits. The main growth factors were the successful fight against account sharing and the introduction of an advertising tariff. Despite this, the company announced its intention to not disclose subscriber numbers in future reports, focusing on revenue and user viewing time.
Refocusing on new metrics
Starting in April 2025, Netflix will no longer publish data on number of subscribers, since this indicator has lost its previous value. Instead, the company will highlight revenue growth and time spent by viewers watching content on the platform. Thus, Netflix will join Apple TV+ and Amazon Prime Video, which no longer disclose the number of their subscribers.
Current Numbers and Projections
As of April 2024, Netflix's total audience is approx. 270 million, up 9.33 million in the quarter and beating estimates. However, the company reserves the right to announce the achievement of important milestones in the future, such as when the number of subscribers crosses the 300 million mark. Netflix estimates that more than half a billion people around the world watch television shows and movies through their service.
Glossary
- Netflix is a leading streaming service for watching movies, TV series and other video content via subscription.
- Apple TV+ is Apple's streaming service for watching exclusive video content.
- Amazon Prime Video is Amazon's streaming service, included in the Prime subscription.
- Password sharing (password sharing) is the practice of transferring credentials for access to paid services to others.
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Answers to questions
What did Netflix say about its subscriber numbers?
Why did Netflix decide not to disclose subscriber numbers?
What other companies have also refused to disclose user numbers?
How did the number of Netflix subscribers change during the quarter and overall?
What other key financial metrics were highlighted in Netflix's report?
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Discussion of the topic – Netflix: The end of the subscription era! Revolutionary changes by 2025
Netflix is preparing for radical changes to its business model. The company will no longer report subscriber numbers starting April 2025, focusing on other growth metrics.
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Alessandro
Netflix is working toward sustainable growth, and their decision to focus on revenue rather than subscriber numbers seems smart. After all, this is a business, and profit matters more in the long term. 🤑
Ольга
Yes, but I don't like this opacity. We, as consumers, have the right to know how many people are using the service. This will help us make more informed decisions. 😕
Михаил
I agree with Olga. While I understand their business motives, full transparency is important for consumer trust. They could find a balance between trade secrets and openness. 💭
Ханс
Most importantly, Netflix is finally cracking down on password sharing. This is fair to those who pay. If you want to watch content, pay appropriately for it. 👍
Франсуа
And I welcome the tariff with advertising. This makes it possible to watch content at a lower price. I don't mind watching a few commercials if it helps save money. The main thing is that advertising is moderate and not too intrusive. 💰
Григорий
Hmm, I'm more concerned about the quality of the content. If Netflix only focuses on profits, they may neglect the creative side, which will negatively impact their shows and films. 🎥
Йоханна
I agree with Gregory. I love Netflix for their original and diverse content. It would be a shame if they compromised for the sake of profit. 😔
Адам
You know, in fact, I even like this change. I've never liked comparing subscriber numbers to other services. Now we can focus on what really matters - quality and ease of use. 👍
Густав
Phew, all these innovations are nonsense! Previously, everything was clear and transparent. Why all these complications and tricks with reports? 😠 I’ve become an old man, I don’t understand these new trends, but they irritate me. Return everything as it was!
София
I think changing the focus from subscriber numbers to revenue is a bold and innovative move. Perhaps other streaming services will follow Netflix's lead. I wonder how this will affect the industry as a whole. 🤔
Лукаш
And I'm worried about the rising prices at Netflix. I understand their desire for profit, but they must be careful not to go too far, otherwise they will lose part of the audience. 💸
Виктория
By the way, do you know what upsets me? When Netflix makes a good series but suddenly cancels it due to financial reasons. This is so disappointing! 😥 I hope that in their pursuit of profit they will not forget about the creative component.
Мария
I'm wondering if Netflix should try something new other than the subscription model? For example, the ability to buy individual seasons or films, and not just subscribe to the entire service. 💡
Марко
In any case, competition in the streaming services market is very high. It will be interesting to see how Netflix adapts to new challenges and whether it can maintain its leadership position. Time will show! 🕰️
Юлия
The main thing is that Netflix does not forget about the quality of content and user convenience in the pursuit of profit. Good service is the key to success, despite all these financial maneuvers. 👌