Netflix is ​​about cash, not members

Netflix goes past subscriber numbers. In his first quarter revenue The outcomes have been printed on Thursday. Netflix introduced that it’s going to cease reporting quarterly membership numbers in 2025 as a result of subscribers are “only one element” of its progress. The change comes after 1 / 4 by which it added 9.3 million subscribers and grew to greater than 270 million members worldwide.

Subscriber numbers meant all the things within the early days of streaming. This enables buyers, studios and everybody else to gauge how properly a streaming service is performing in comparison with its rivals, and Netflix is ​​constructing on its management on this space.

However now Netflix says it is turning that concept on its head because it has a number of income streams that do not rely solely on month-to-month memberships.

The letter to shareholders highlights “new” income streams, together with promoting by means of plan with promoting and paid alternate. “As a result of we’ve modified our pricing and plans from single to a number of tiers with completely different worth factors relying on nation, every further paid membership has a totally completely different enterprise impression,” Netflix wrote in its letter to shareholders. The streamer can even not report common income per member on a quarterly foundation.

As an alternative, Netflix says it’ll present a income breakdown by area every quarter and reveal “key subscriber numbers” when it hits them. “In the end, we consider that is the perfect method to mirror the evolution of the enterprise,” Netflix co-CEO Ted Sarandos mentioned through the keynote. revenue interview. “We deal with engagement as a result of we consider it’s the single finest indicator of member satisfaction with our providing, and a number one indicator of buyer retention and acquisition over time.”

In different phrases, streaming is simple. extra like a cable. As an alternative of valuing the individuals who join its service, Netflix is ​​betting that they’ll keep subscribed and possibly even pay so as to add an extra member. As for subscription costs, co-CEO Greg Peters mentioned. throughout an revenue interview that Netflix has no “set ceiling.” It would ask subscribers to pay extra as a result of it provides “extra leisure worth”, which suggests worth will increase are usually not over but only for now.

(Disclosure: Vox Media Studios produced Full swing And Edge not too long ago launched a collection from Netflix.)

Replace April 18, 4:55 pm ET: Added Ted Sarandos quote.

Replace April 18, 5:38 pm ET: Added quote from Greg Peters.