Indian Broadcasting World’s Post

🔍 Despite smashing Q1 earnings, Netflix’s stock dipped by 15% after announcing they are no longer reporting on subscriber numbers. In his latest op-ed for The Current, our Co-Founder, Joel Cox, argues that the real value of #Netflix extends beyond its sheer amount of subscribers. This pivot reflects a broader industry trend towards sustainability and diversified revenue streams, including ad-supported tiers. 🤔 Is Netflix ahead of the curve, or is Wall Street's skepticism warranted? Read Joel's full analysis here: https://lnkd.in/gRBpmMFm What's your take on this strategic shift? #ConnectedTV #CTV #OTT #StreamingMedia

As an ex-Flixer I found this announcement the most interesting part of Netflix's latest earnings - starting in 2025 neither quarterly sub growth counts or ARPU (they call it 'ARM') will be publicly reported by the streamer, instead putting more focus on 'engagement'. While I understand the logic behind the decision, it also makes the need for a common set of performance metrics to be used across all streamers. With all the major streamers having followed Peacock's lead into offering ad-supported plans, I suspect that advertisers would like common metric categories as well. #streaming #peacock #netflix #earnings #advertising

In a world where streaming giants continually redefine innovation, Netflix's strategic decision to stop regularly reporting subscriber numbers marks a bold shift. This move places a greater emphasis on financial metrics, revenue, and profit growth, positioning Netflix for potential expansions into advertising and video gaming. Mirroring the evolutionary steps of tech behemoths like Amazon and Apple, Netflix's focus on broader success measures signals a significant evolution from a pure-play streaming service to a multifaceted, tech-forward entity. However, this raises questions about data transparency and competition among streaming services. In the ever-evolving media landscape, this strategy not only showcases Netflix's readiness for future industry shifts but also challenges the established norms of entertainment and technology. For media and tech industry leaders, it serves as a clarion call to rethink what constitutes success in the digital age. As Netflix explores new sectors, adopts financial metrics, and evolves beyond traditional streaming, it underscores the importance of strategic planning and competitive positioning. What are your thoughts on the future of data transparency and competition in the streaming services sector? How do you think Netflix's strategy will reshape the competitive landscape and potentially signal future technological advancements in media? Share your insights and comments below. #Netflix #StreamingServices #MediaInnovation #TechTrends #DigitalStrategy #EntertainmentIndustry #VideoGaming #Advertising https://lnkd.in/dh7e9VQJ

When your metrics change… (Netflix) Growth 2.0 After spurring all of Hollywood to compete for streaming subscribers, Netflix is ending the race. ▪️ The streamer will no longer provide updated subscriber numbers during its quarterly earnings reports — it’ll only share them when they hit “certain major milestones,” per co-CEO Greg Peters. ▪️ Instead, it’ll focus on the metrics that Wall Street now cares most about, like revenue, operating income, and overall engagement on the platform. ▪️ Part of that reason is because the simple math of number of subscribers to revenue no longer makes sense — Netflix has multiple paid tiers, a growing ad tier, and may even change prices per market. #netflix #subscribers #streaming #media #tiers #tv https://lnkd.in/eHKceU9b

ICYMI: Netflix's surprising move to cease reporting subscriber numbers has sent shockwaves through the streaming industry, raising questions about the company's future trajectory. With shares taking a 4.2% hit, investors are left wondering about the implications of this decision and how it will impact Netflix's competitive position in the ever-evolving #streaming landscape. https://lnkd.in/gNM_B2NU

Netflix, which started life in 1997 as a mail-only DVD service, reported another quarter of subscriber gains, taking its global total to almost 283 million, with user numbers in all four of the company’s major regions growing in the last 12 months. In countries where it is available, more than 50% of signups in the third quarter were for the company’s cheaper ad-supported tier. That result takes Netflix further ahead of its chief rivals, like Disney+, counting roughly 130 million more subscribers than its closest competition. Indeed Netflix’s real competition might actually be YouTube. In the six months leading up to July, 25% of all time spent streaming on US televisions was on YouTube, compared to ~20% on Netflix, according to data from Nielsen. With the most expensive Netflix package now costing $22.99 per month in the US, the company’s business model — which requires spending tens of billions of dollars on content every year — is starting to show the benefits of its scale. It turns out that raising prices, while still growing your customer base, is an unsurprising recipe for success: Netflix’s third quarter was the company’s most profitable in its history, with profits up 41% year on year. Using $11.60 monthly subscription figure as our starting point, what does that monthly subscription get spent on? A little more than six bucks, or just over half, gets spent on delivering the actual content. That’s the cost of licenses, production, and content delivery. Marketing takes another $0.76, technology and development costs $0.87, and general overheads cost almost $0.50, too. So out of your $11.60 monthly subscription, Netflix is left with a pretty tidy $3.44 in operating profit, which after interest expenses and taxes gets whittled down to $2.79, a still healthy 24% profit margin. #streaming #ott #svod #netflix #subscribers #economy #YouTube

Netflix said on Thursday it added more than 8 million subscribers in its second quarter as the streaming service benefited from a password-sharing crackdown and the popularity of such titles as “Bridgerton,” “Baby Reindeer” and “The Roast of Tom Brady.” While the subscriber gains topped analyst predictions of 5 million, Netflix issued cautious guidance for the third quarter and said its advertising business would not become a primary driver of revenue growth until at least 2026. Netflix shares reversed initial losses after it reported results to trade up 1% in after-hours trading. The stock has surged nearly a third so far this year. “Netflix is still the best and most profitable streaming company out there, but with technology stocks generally retreating over the last several days, some investors may sell on the generally good news and taking profits now while waiting for a possible better re-entry point for the stock,” said Michael Ashley Schulman, chief investment officer at Running Point Capital. The streaming video pioneer is facing saturation in the United States and plans to stop regularly reporting new subscriber additions next year. Investors have been zeroing in on the company’s relatively new advertising business as a potential source of growth. Story: https://lnkd.in/gXVhEzJw Science & Technology | Thomson Reuters

🚀 When it initially launched, Netflix's ad-supported plan was a principal driver of new subscriptions, but it wasn't until their key bold strategic moves to discontinue their Basic ad-free plan and to crack down on account sharers that their ad-user base really grew. 🇺🇸 If their latest announcement to phase out the plan completely and (in an ideal world) roll the current Basic subscribers onto an ad tier, we may start to see more significant numbers coming from their ad tier, especially in mature markets like the U.S. 💲 While this move may help further monetise their current users, to meet their target of growing their share of viewing by competing with linear & other streamers they'll need to drive a substantial increase in their number of monthly active users. 🎯 Netflix is great at keeping viewers hooked once they're in, but how will they appeal to a wider market and draw in more sceptical & price-sensitive TV viewers? Excited to hear their next load of content slate announcements & I'll be watching their live event viewing stats closely. If you're interested in seeing this analysis for countries other than the U.S. - get in touch: Get in touch: https://lnkd.in/eSrnzT96 🌐 We've got a global data base here at Digital i.

Are Netflix's recent changes the dawn of a new era in streaming, or just history repeating itself? With its crackdown on password sharing and a strategic shift towards emphasizing revenue over subscriber numbers, Netflix is rewriting the playbook for streaming success. While critics argue that these moves might mask potential stagnation in saturated markets, the influx of new subscribers after the password policy suggests that FOMO around Netflix's water cooler chats still drives demand. The streaming giant's evolution mirrors the consolidation of traditional cable TV while highlighting a shift in industry metrics. Is the future of streaming poised for transparency or facing a nostalgic full circle? Share your thoughts! #Technology #Streaming #Digital #Future https://lnkd.in/e9KGq28Z

Netflix has decided to stop sharing subscriber numbers in 2025 leading to the stock dropping by almost 9.5% as of this week! They will however continue to report total streaming subscribers and regional subscriber figures each quarter. Very bold move in my opinion so I dug deeper to better understand Netflix's decision and here's what came up: 1. Netflix is increasingly focused on revenue as its primary top-line metric, rather than just subscriber growth.   a. As Netflix develops new revenue streams like advertising and paid sharing, membership is just one component of their overall revenue growth.   b. Providing subscriber guidance can distract from the company's focus on improving profitability and monetization. 2. Most other major streaming companies, like The Walt Disney Company, Warner Bros. Discovery, Discovery Inc, and NBCUniversal also do not provide forward-looking subscriber guidance.   a. This shift aligns Netflix more closely with industry practice. 3. Netflix wants to shift the narrative away from just subscriber numbers and towards its overall financial performance.   a. The company believes revenue is a more important metric as it navigates the streaming wars and develops new revenue streams. Netflix moving away from subscriber numbers looks to be an effort to put more emphasis on revenue growth, profitability, and overall financial performance, which it sees as more important metrics going forward. This change reflects the company's strategic pivot as it matures and faces increasing competition for users attention from TikTok, Snap Inc. and from other streaming giants like Apple+, HBO Max, Prime Video & Amazon Studios