On Thursday, Netflix opened a new tab and unexpectedly announced it would stop reporting subscriber numbers each quarter. The decision is seen as a sign that years of customer gains in the streaming wars are coming to an end.
Shares of the streaming video pioneer fell after it reported a big batch of new subscribers in the first quarter but delivered a revenue forecast that missed analyst targets. The stock was trading at $585.41 after hours, down 4.2% from its closing price.
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Netflix said its ad-supported streaming plans helped attract 9.3 million new subscribers, nearly double the consensus forecast of analysts surveyed by LSEG. Its global total reached 269.6 million at the end of March.
Netflix executives have urged investors to focus on revenue and operating margins rather than subscriber growth when assessing the company’s progress. Netflix said it will stop disclosing additional subscribers each quarter starting in the first quarter of 2025, and instead make announcements only when key milestones are reached.
Netflix to stop reporting subscriber numbers from next year https://t.co/OfUPEmsurZ
— BBC News (UK) (@BBCNews) April 19, 2024
“This change is driven by a desire to focus on the key metrics that we see that matter most to the business,” co-Chief Executive Greg Peters said in a post-earnings video.
Analysts said the decision to end quarterly reporting of subscriber numbers could anger investors and make it harder for Wall Street analysts to gauge the company’s business going forward. He also said it’s unclear what the boost to new sign-ups will be once Netflix attracts more users with its crackdown on password sharing.
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