Netflix made a bold move by deciding to no longer disclose quarterly membership numbers and average revenue per membership starting in 2025. This shift marks a significant change for the company in the competitive landscape of the “streaming wars.” Instead of focusing on customer numbers, Netflix wants investors to evaluate its performance based on revenue, operating margin, free cash flow, and customer engagement metrics.
This strategic decision reflects Netflix’s confidence in its current subscriber base and its efforts to enhance customer satisfaction. The recent growth in subscribers, driven by initiatives like a crackdown on password-sharing and the introduction of a more affordable ad-supported tier, indicates a successful phase for the company.
By emphasizing these key financial and engagement indicators, Netflix aims to showcase its long-term sustainability and value proposition to investors. This shift in reporting signals a new chapter for Netflix as it navigates the evolving streaming landscape.