Netflix plans to no longer disclose membership numbers and average earnings starting from 2025, indicating the maturity and transformation of the company's strategy.

Netflix's strategic shift

Netflix announced that it will no longer report its quarterly membership numbers and average revenue data for each member starting from the first quarter of 2025. This change will have a significant impact on the company and the streaming industry.

Netflix hopes that investors can evaluate the company using metrics that executives believe best reflect customer satisfaction, such as revenue, operating profit margin, free cash flow, and the amount of time users spend on Netflix.

Quarterly performance and growth slowdown

Netflix added 9.3 million new subscribers in the first quarter, partly due to its global crackdown on password sharing and the launch of a cheaper advertising tier subscription scheme. However, subscription growth in the second quarter is expected to be lower than in the first quarter, which may be a signal of the beginning of a long-term trend of slowing subscription growth.

Financial stability

Netflix's financial situation is far superior to most traditional media companies. For example, Netflix's annual revenue increased by 15%, operating revenue increased by 54%, and operating profit margin increased by 7 percentage points to 28%.

These growth rates have significantly surpassed companies such as Warner Bros., Disney, Paramount Global, and NBC Global, whose streaming services have suffered losses or barely made profits, and their traditional television businesses are also declining.