Netflix
is
moving
beyond
subscriber
numbers.
In
its
first
quarter
earnings
results
released
on
Thursday,
Netflix
announced
that
it
will
stop
reporting
quarterly
membership
numbers
in
2025
because
subscribers
are
“just
one
component”
of
its
growth.
The
change
comes
after
a
quarter
where
it
added
9.3
million
subscribers,
growing
to
more
than
270
million
members
globally.
Subscriber
count
meant
everything
in
the
early
days
of
streaming.
It
allows
investors,
studios,
and
everyone
else
to
gauge
just
how
well
a
streaming
service
is
doing
compared
to
the
competition,
and
Netflix
has
leaned
on
its
lead
in
that
area.
But
now,
Netflix
says
it
is
flipping
this
idea
on
its
head
because
it
has
multiple
sources
of
revenue
that
don’t
hinge
solely
on
monthly
memberships.
Its
letter
to
shareholders
highlights
“new”
revenue
streams,
including
advertising
through
its
ad-supported
plan
and
paid
sharing.
“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,”
Netflix
writes
in
its
letter
to
shareholders.
The
streamer
also
won’t
report
average
revenue
per
member
on
a
quarterly
basis.
Instead,
Netflix
says
it
will
provide
a
breakdown
of
revenue
by
region
each
quarter,
and
it
will
reveal
“major
subscriber
milestones”
when
it
hits
them.
“Ultimately,
we
think
this
is
a
better
approach
that
reflects
the
evolution
of
the
business,”
Netflix
co-CEO
Ted
Sarandos
said
during
an
earnings
interview.
“Why
we
focus
on
engagement
is
because
we
believe
it’s
the
single
best
indicator
of
member
satisfaction
with
our
offering,
and
it
is
a
leading
indicator
for
retention
and
acquisition
over
time.”
In
other
words,
streaming
is
just
getting
more
like
cable.
Instead
of
placing
value
in
the
people
who
sign
up
for
its
service,
Netflix
is
betting
that
they’ll
stay
subscribed
and
maybe
even
pay
to
add
an
extra
member.
As
for
subscription
pricing,
co-CEO
Greg
Peters
said
during
the
earnings
interview
that
Netflix
doesn’t
have
a
“set
ceiling.”
It
will
ask
subscribers
to
pay
more
as
it
adds
“more
entertainment
value,”
which
means
the
price
hikes
aren’t
over
just
yet.
(Disclosure:
Vox
Media
Studios
produced Full
Swing,
and The
Verge recently
produced
a
series
with
Netflix.)
Update
April
18th,
4:55PM
ET:
Added
a
quote
from
Ted
Sarandos.
Update
April
18th,
5:38PM
ET:
Added
a
quote
from
Greg
Peters.
(Originally posted by Emma Roth)
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