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.
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