Netflix will stop reporting quarterly subscriber numbers and average revenue per member, focusing on revenue, operating margin, and engagement metrics instead. The company will also focus on new revenue streams and features.
Key Points
Shift in focus from subscriber numbers to revenue and engagement metrics
Emphasis on new revenue streams like advertising and extra member features
Netflix's success in adding new subscribers in 2023 and 2024
Strategy to combat password sharing and increase paid subscriptions
Pros
Focus on revenue and operating margin provides a clearer financial picture
Emphasis on engagement can be a better indicator of customer satisfaction
Development of new revenue streams and features can lead to growth
Cons
Moving away from subscriber numbers may impact investor sentiment
Lack of specific parameters for major subscriber milestones can create uncertainty