At Binged we have always and always supported the transparency with the data we used to get at Netflix. They would reveal weekly data that helped us analyze any film or series. Even today, we get weekly reports on the performance of particular titles in terms of views.
Not only that, we get quarterly reports too. We even got it yesterday. But, they will be a thing of the past from 2025.
Yes, Netflix will stop sharing these data from next year onwards.
Also, in a recent letter to shareholders, the company revealed that it would no longer report a key metric called ARM, or average revenue per membership. ARM is calculated by dividing streaming revenue by the average number of paid memberships over a period of time.
Co-CEO Greg Peters explained the rationale behind this move. According to him, it is due to the company shifting focus towards financial sustainability.
We can guess the reason behind this step. We have to go back to 2022 when Netflix lost 200,000 subscribers at the beginning of the year, followed by nearly a million more by July. This decline led to a drop in the company’s stock price. To counter this trend, Netflix introduced a more affordable, ad-supported plan, which resulted in gaining almost 9 million subscribers by the end of 2022.
However, the tide turned in 2023, with subscriber growth picking up momentum each quarter. This growth coincided with Netflix’s initiatives to address issues such as password sharing and adjusting subscription prices. By the end of 2023, Netflix had added an impressive 13.1 million new subscribers. The positive trend continued into the first quarter of 2024, with an additional 9.3 million subscribers.
Fortunately or unfortunately, Netflix is a pioneer in many things. Whatever it does is followed by most other OTT platforms. Take the case of password crackdown for instance. This step would inspire other platforms like HBO Max, Prime Video and Disney+ to stop revealing their quarter earnings. The company will be shrouded in mystery and keep earning.
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