Adrian Janon’s Post

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

🔍 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

Netflix has announced a significant shift in its reporting strategy, opting to discontinue quarterly subscriber number disclosures, signaling a potential slowdown in its years-long streak of customer gains in the streaming wars.... Read More At:- https://lnkd.in/gUMcdb9y Netflix #Strategy #subscribers #Strategy #slowdown #customer #streamingwars #news #NewsUpdate #newsfeed #dailynews #IBWNews

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

Streaming video pioneer #Netflix picked up 5.1 million subscribers in the third quarter, topping Wall Street estimates by more than 1 million users, the company said in its earnings report on Thursday. Investors had expected Netflix to bring in 4 million subscribers from July through September, according to analysts’ estimates compiled by LSEG. New programming during the period included murder mystery “The Perfect Couple” and romantic comedy “Nobody Wants This.” Diluted earnings per share landed at $5.40, above the consensus forecast of $5.12. Revenue hit $9.825 billion, just ahead of the $9.769 billion consensus forecast. Netflix has been trying to shift investor attention away from subscriber sign-ups to other metrics, including revenue growth and profit margins. The company said its operating margin hit 30% in the quarter, compared with 22% a year earlier. “We’ve delivered on our plan to reaccelerate our business, and we’re excited to finish the year strong with a great Q4 slate,” the company said in a letter to shareholders. Netflix is working to increase revenue from its new ad-supported plans but has said it does not expect advertising to become a primary growth driver until 2026. In the third quarter, researcher Antenna reported that Netflix added more than 1.9 million subscribers to its ad-supported service. Story: https://lnkd.in/gxMstPXT Science & Technology | Thomson Reuters

Netflix closed Q4 with impressive results that solidified its leading position in video streaming. However, there has been considerable debate regarding the upcoming subscription price increases and whether they are warranted. Our own Stefan Lederer offered his insights to Quartz on how Netflix can find the right equilibrium among pricing, content, and innovation without driving viewers away. https://okt.to/zJIXvS

The content is King and distribution is GOD.. when you give Market analysis content with High quality engagement will fall in place rather then spend on user acquisition #Ott #useracquisition #userengagement #Netfilx #Bsvalue

Netflix has demonstrated impressive growth with a 95% rise in share price over the past year, outpacing the MSCI World index by 60%. As highlighted by Ty Archibald, CFA in his recent analysis, key drivers behind this success include a widening competitive lead, an improving financial profile with new revenue streams, and a strong content lineup that includes live sports and highly anticipated releases. As peers scale back on spending, Netflix continues to invest heavily in content, positioning itself for further subscriber growth and earnings upside. With pricing power and cost control in place, we believe Netflix is poised for continued strong performance into 2025. Read the full article here: https://lnkd.in/gwT7paQ6

In a letter to its shareholders a few weeks ago, Netflix made it clear that subscriber numbers are not the only metric that illustrate its growth. Its focus to develop this advertising revenue stream is another demonstration of the exciting opportunities that it can offer. Netflix's introduction of the advertising tier in 2022, made it ahead of the curve in regards to advertising on streaming platforms and its business moves continue to bring insight into the future of the advertising in this sphere. Mike Proulx, VP and research director at Forrester, spoke to The Current, 'There are only so many net-new subscribers [streamers] can chase, especially in a world now where there is so much competition and consumer choice....I think there is going to be a disengagement between revenue and subscriber numbers due to the growth of their ad-supported business.' Read more about the strategic developments in the Netflix advertising here: https://hubs.li/Q02xWcm60 #DigitalMarketing #Netflix #news

✅🖥️ New York Times (6/22): “Streaming has long been hailed as a promising business, because companies like Netflix can add additional subscribers at little extra cost. The more paying subs a service has, the more the company’s costs can be spread out over a large base, lowering the cost per sub. But those want lots of options, and the costs of making enough programming can be enormous. As a result, a streaming service’s profitability depends in large part on how many paying subs are needed before those TV shows and movies become cost-effective. There was a time when industry execs hoped that number might be as low as 100MM. But now the consensus among many of the executives interviewed is that the number is at least 200, and possibly more. “If you’re going to be a full entertainment service with live sports and tent-pole blockbusters today, 200MM is a number that can give you the scale with the hope for growth over time,” Amazon (execs have) said. Bob Chapek, Disney’s CEO until 2022, also agreed that 200 was the number that meant “you’re big enough to compete.” Netflix has reached that, and then some, with about 270MM paying subs. Moreover, those pay an industry-leading average of more than $11 per month. Netflix is highly profitable, with operating margins of 28 percent. In the first quarter of 2024, Netflix reported revenue of $9.4B, and $2.3B in net income. No one else comes close. Disney and Amazon are the only other streaming services with more than 200MM subscribers.” ⬇️ #streamingtv #ctvadvertising #avod #svod #ott #fast #upfronts