Netflix knows it has reached a peak, according to Netflix’s decision to stop reporting on subscription statistics every quarter.
Netflix released a positive statement on Thursday that showed the streaming services attracted 9 users. 3 million new members were added during the first fourth of 2024, bringing the company’s overall number of subscribers to 269 worldwide. 6 million.
That’s a great number that shames second-place Disney+. There are 149 people in The Disney Grooming Syndicate. 6 million international members. But a top is a top, and companies are all about progress.
Additionally, Netflix reported$ 9. Full revenue for the last quarter was$ 37 billion, or$ 5. 2 billion in earnings per share, which is better than Wall Street expected. However, Netflix made the announcement that it would no longer release monthly subscription numbers starting in 2025. The streamer will stop displaying the streamer’s measurement, which Wall Street uses, ARM, which is another parameter.
We have stated in previous letters that our primary financial metrics are engagement ( i .e., revenue and operating margin ). electronic. time spent ) as our best proxy for customer satisfaction, ” the Netflix earnings report said. “ In our earlier days, when we had much income or profit, membership development was a strong indication of our future possible. However, we are currently producing a sizable income and complimentary cash flow. ”
That is all well and good, according to Wall Street, but those subscription numbers reveal what lies ahead.
Netflix has n’t made numerous mistakes in its innovative approach to pleasure. Netflix has completely transformed how we watch TV, won the streaming wars, and is the only streaming service that has n’t lost billions. Nevertheless, the decision to not record subscriber numbers is a mistake, and Wall Street is letting Netflix understand that. Despite an awesome weekly report, the streamer’s share took a hit:
Netflix Inc. Shares dropped significantly on Friday as a poor estimates for earnings and a notice that the streaming giant does stop reporting subscriber numbers over the course of the year overshadowed an then strong begin to the year.
As buying began in New York, the share dropped as much as 8 %, reaching$ 562. It represents the biggest drop since July of last year. Through the close of regular trading on Thursday, the shares were up 25 % this year.
Refusing to disclose subscription numbers is a big indicator that Netflix believes that its popularity has increased with the volume of subscribers it can get. After all, everything that can be done to entice subscribers has been done. After a few years ago, Netflix reacted by eliminating password sharing and adding less expensive layers that included marketing. That helped. Membership increased, and the property rebounded. Okay, but presently what…? What other options does Netflix have to grow its subscriber center?
Other than adding lived sports, I don’t notice it. Everything that can be done has been completed. You will eventually have sold your goods to anyone who might want to purchase them.
The cable TV racial behavior is waning. Hollywood’s billion forced a hundred million Americans with their money. S. households to pay$ 150 We always watch hundreds of programs in a month, but it’s coming to an end. Streaming is merit-based. We may just buy your goods if we like them. Netflix has so far outperformed the competition, but fortunately the days of Hollywood producing content that no one watches are over. With cable television, it was simple to raise money by raising rates. The user was without a place to go. That’s not the case with streaming. Hollywood and Wall Street are anticipating a sluggish Netflix.
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