Netflix Adds 9 Million More Subscribers in First Quarter, Will Stop Reporting Subscriber Numbers Next Year

Just trust them, it's going fine.

Netflix is reporting a healthy start to the fiscal year in its earnings today, bringing in nine million new subscribers in the last quarter for a grand total of 269.6 million. But soon, we won't be able to headline Netflix earnings stories with that information anymore.

In the first quarter, Netflix has added an impressive 9.3 million new subscribers, reinforcing its lead in the subscription streaming TV market. The company now has a remarkable total of 269.6 million global subscribers.

In a notable shift, Netflix has decided to stop reporting its quarterly subscriber numbers starting in 2025. This change is indicative of the company's changing focus. As Netflix grows and becomes more profitable, it acknowledges that membership growth is not the only measure of its future success. The company is expanding its revenue sources, including advertising and other member services.

Netflix will also remove the ARM (average revenue per membership) metric from its reports. ARM is defined as the streaming revenue divided by the average number of streaming paid memberships over the number of months in the period. This move highlights Netflix's emphasis on revenue and profit over mere membership increase.

Co-CEO Greg Peters highlighted this strategic change in an earnings call, saying, "Ultimately, we believe this is a more appropriate method that mirrors the business's progression." The company's main goals now are engagement, revenue, and profit, with satisfied members consuming more content and aiding in its success.

Expanding beyond streaming, Netflix is entering the live sports arena, acquiring the rights to broadcast WWE Raw in 2025 and the exclusive streaming of the boxing match between social media personality Jake Paul and Mike Tyson in July. Netflix continues to be a significant force in the entertainment sector.

Source: CBS News