Netflix will no longer report subscriber numbers — which has been a key metric for streaming services for years — beginning with the first quarter of 2025.
The company made the announcement in releasing its first-quarter 2024 earnings Thursday. Netflix handily topped expectations for subscribers net adds, gaining 9.33 million in the period, to reach nearly 270 million globally. It also beat Wall Street expectations on the top and bottom lines.
Despite the Q1 earnings beat, Netflix shares dropped more than 4.5% in after-hours trading Thursday, possibly as investors reacted negatively to the news that the streamer will stop reporting quarterly sub totals.
In its Q1 letter to shareholders, Netflix said that engagement — time spent with the service — is its “best proxy for customer satisfaction.” As such, it will no longer report quarterly membership numbers or average revenue per member (which it dubs “ARM”), as of Q1 2025. Netflix said it will announce “major subscriber milestones as we cross them” but will cease disclosing quarterly subscriber numbers.
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Netflix continues to see solid subscriber gains in markets around the world; for example, it netted 2.53 million new customers in the U.S. and Canada in Q1. But eventually those sub numbers will start to plateau, and the company wants to reorient investors toward time-spent-viewing metrics where it has more potential upside in the years ahead.
Co-CEO Greg Peters said on the earnings call that Netflix’s number of subscribers has been a decreasingly relevant measure for the health of the company’s business. He cited, as an example, Netflix’s paid-sharing initiative, which gives primary account holders the option to add an “extra member” for an incremental monthly fee (and those “extra members” are not counted as separate subscribers). Meanwhile, with Netflix’s advertising plan, higher engagement is tied to higher revenue per member, as opposed to the fixed per-sub revenue on the plans with no ads.
“As we’ve noted in previous letters, we’re focused on revenue and operating margin as our primary financial metrics — and engagement (i.e. time spent) as our best proxy for customer satisfaction. In our early days, when we had little revenue or profit, membership growth was a strong indicator of our future potential,” Netflix said in the letter. “But now we’re generating very substantial profit and free cash flow (FCF). We are also developing new revenue streams like advertising and our extra member feature, so memberships are just one component of our growth.”
The company continued, “In addition, as we’ve evolved our pricing and plans from a single to multiple tiers with different price points depending on the country, each incremental paid membership has a very different business impact. It’s why we stopped providing quarterly paid membership guidance in 2023 and, starting next year with our Q1’25 earnings, we will stop reporting quarterly membership numbers and ARM.”
According to Netflix, it will continue to provide a breakout of revenue by region each quarter and the foreign-exchange impact “to complement our financials.” Going forward, the company will add guidance for annual revenue in addition to what it already provides: annual operating margin and free cash flow forecast and forecasts for quarterly revenue, operating income, net income and earnings per share.
Last December, the company released its first “Netflix Engagement Report,” inclusive of more than 18,000 titles and nearly 100 billion hours viewed between January-June 2023, representing 99% of all viewing during that period. In the report, Netflix divulged streaming performance metrics for licensed content. It plans to release the data twice per year — mainly to highlight the massive engagement across a wide range of content on its service.
“Success in streaming starts with engagement,” Netflix said in the shareholder letter in discussing the decision to stop reporting subscriber numbers. “When people watch more, they stick around longer (retention), recommend Netflix more often (acquisition) and place a higher value on our service. It’s why we’ve been providing progressively more information on engagement, starting with our Top 10 weekly and most popular lists and more recently our biannual report into viewing on Netflix (which covers ~99% of all video watch time on our service). This is more information than any of our competitors provide, and we expect to provide even more over time.”
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FAQs
In its Q1 letter to shareholders, Netflix said that engagement — time spent with the service — is its “best proxy for customer satisfaction.” As such, it will no longer report quarterly membership numbers or average revenue per member (which it dubs “ARM”), as of Q1 2025.
Will Netflix no longer report subscribers? ›
Crucial to the success of this financial rebranding will be presenting Netflix as a stable growing business, which is why the company has announced that it will cease reporting on subscriber numbers from Q1 2025.
Will Netflix stop providing subscriber numbers in 2025? ›
Netflix will stop reporting quarterly subscriber numbers starting with its first- quarter 2025 earnings, as the company says it's more focused on other metrics. Additionally, the streaming giant said Thursday that it would stop reporting average revenue per member, which it refers to as ARM.
How many subscribers will Netflix have in 2024? ›
Quarterly Netflix subscribers count worldwide 2013-2024
Netflix had around 269.6 million paid subscribers worldwide as of the first quarter of 2024. This marked an increase of over nine million subscribers compared with the previous quarter.
What is the cost for Netflix in 2024? ›
Netflix Prices in 2024
Additional tiers include $15.49 for Standard service, which includes 2 screens, and $22.99 for Premium, which includes 4 screens as well as upgraded HDR/4K resolution.
What is the future outlook for Netflix? ›
NFLX Stock 12 Month Forecast
Based on 36 Wall Street analysts offering 12 month price targets for Netflix in the last 3 months. The average price target is $659.60 with a high forecast of $800.00 and a low forecast of $450.00. The average price target represents a -3.87% change from the last price of $686.12.
How much will Netflix be in 2025? ›
Even if Netflix stretches its valuation to nearly $1 trillion by 2025, Meta could be worth much more by then. Netflix's shares still have plenty of room to run.
How can Netflix retain subscribers? ›
By understanding users' preferences and viewing habits, Netflix can curate tailored content suggestions, enhancing engagement and retention. 2. Content Curation and Production: Investing in diverse and high-quality original content is crucial for retaining subscribers.
How to Netflix subscription free? ›
Netflix does not offer free trials, but you have the freedom to change your plan or cancel online at any time if you decide Netflix isn't for you. There are no contracts, no cancellation fees, and no commitments. You can sign up and take advantage of all Netflix has to offer.
What is the maximum number of Netflix users? ›
Your account can have up to five individual profiles, and you can set a maturity rating level on each one.
But that limitation no longer exists — you can log into Netflix with as many devices as you like, as long as you don't try to stream from too many at once. Here's a breakdown of the Netflix guidelines for devices and people, based on your subscription plan.
Can I share my Netflix account with family in a different home? ›
A Netflix account is meant to be shared by people who live together in one household. People who are not in your household will need to sign up for their own account to watch Netflix. You can manage who uses your account by setting a Netflix Household.
What will Netflix be worth in 2030? ›
The stock's total value must multiply by nearly 5 before reaching a $1 trillion market cap -- an ambitious goal that calls for time and patience. A more reasonable, yet consistently market-beating, estimate suggests Netflix could reach a $564 million market cap by 2030 and $1 trillion in 2035.
How much does Netflix cost a month? ›
Netflix costs $6.99 to $22.99 per month, depending on your subscription plan. It offers three plans: Standard With Ads, Standard and Premium. A former popular choice was the Basic plan at $9.99, but Netflix eliminated this option for new or rejoining members and is phasing it out entirely. Users can cancel anytime.
How much is Netflix and Peaco*ck a month? ›
At a price of $15 per month, the StreamSaver bundle aims to save consumers money in comparison to buying the separate streaming services individually, as Apple TV+ costs $9.99 a month, a standard Netflix subscription with ads costs $6.99 a month and Peaco*ck Premium costs $5.99 a month.
Is Netflix Premium worth it? ›
If you've invested in a shiny new 4K TV, you probably want to get the most out of it with a Premium subscription. Or maybe you have a larger household, and two concurrent streams won't be enough for you. (Do make sure that you keep those streams within your home unless you've paid for extra members on your account).
Which Netflix package is best? ›
The Standard with ads plan is suitable for occasional viewers, while the Standard plan is ad-free and allows for streaming on multiple devices. The Premium plan is recommended for large families and offers 4K streaming and downloads on up to six devices.
How much will Netflix cost in 2025? ›
Long-Term NetFlix Stock Price Predictions
| Year | Prediction | Change |
|---|
| 2025 | $ 890.46 | 29.78% |
| 2026 | $ 1,155.65 | 68.43% |
| 2027 | $ 1,499.83 | 118.60% |
| 2028 | $ 1,946.50 | 183.70% |
2 more rowsIn March 2023, the company told Bloomberg that it is shifting its media strategy, which includes producing fewer projects in the future. Netflix is also reportedly aiming to make 25 to 30 films annually instead of 50.
How much is Netflix a month in 2024? ›
How much Netflix costs a month
| Subscription plan | Monthly price | Access to content |
|---|
| Standard with Ads | $6.99 | Due to licensing restrictions, some titles are inaccessible |
| Standard | $15.49 | Every Netflix title |
| Premium | $22.99 | Every Netflix title |
Apr 5, 2024
You can create profiles for members in your household, allowing them to have their own personalized Netflix experience. Your account can have up to five individual profiles, and you can set a maturity rating level on each one.
Why did Netflix stock drop in 2024? ›
Netflix Inc. shares tumbled the most in two years on Friday as a weak forecast for revenue and a warning that the streaming giant will stop reporting subscriber numbers in 2025 overshadowed an otherwise strong start to the year.
How many Netflix subscribers by country? ›
Netflix Subscribers by Country
| country | note | subscribers |
|---|
| Argentina | Subscribers (Estimate) | 5,000,000 |
| Australia | Subscribers (Estimate) | 6,500,000 |
| Austria | Subscribers (Estimate) | 1,300,000 |
| Azerbaijan | Subscribers (Estimate) | 20,000 |
116 more rows
