Streaming giant announces impressive results but makes a surprising move regarding reporting metrics.
Netflix, the leading streaming service, has announced significant Q1 2024 earnings growth, adding 9.3 million new subscribers and reaching a total profit of $2.3 billion. The company attributes this success to its crackdown on password sharing and the popularity of new shows like Griselda.
Netflix to stop reporting subscriber numbers
Despite the promising numbers, Netflix surprised investors by announcing that it will stop disclosing key metrics, such as monthly subscriber counts, from next year. This decision has raised questions about the company’s future growth prospects, with some analysts fearing that Netflix’s growth wave is nearing its end.
However, Netflix defends itself by stating that subscriber numbers are no longer the sole indicator of its success. The company wants investors to focus on metrics like profits and revenue, which better reflect its overall financial health.
In addition, Netflix is also taking steps to maintain growth and strengthen its position in the streaming sector. The company is combating password sharing by introducing a cheaper ad-supported plan and expanding into areas like sports and video games.
Here are some additional points to consider:
- Netflix shares have risen by over 30% since the beginning of the year, but immediately dropped by 5% after the announcement of no longer disclosing subscribers.
- Some analysts believe that Netflix is losing its dominance in the streaming sector.
- The company is trying to diversify its activities and reach new audiences.
- Netflix faces growing competition from streaming services like Disney+, HBO Max, and Amazon Prime Video.
