In its Q4 earnings report, Netflix announced a significant increase in subscribers, adding about 19 million paid accounts, bringing the total to over 300 million. The majority of new sign-ups are attributed to its ad-supported plan. Despite the growth, Netflix will discontinue reporting quarterly subscriber numbers by Q1 2025, focusing instead on milestones. Experts view this strategy as a shift towards a business model more reliant on advertising revenue rather than solely subscriber count, which is deemed insufficient for evaluating overall performance.
"It's hard to have a single metric and let a number of net new subscribers dictate your business when a larger percentage of your revenue over time is coming from advertising."
"The subscriber number doesn't give a full picture of the business, and even a smaller number of subscribers can lead to more revenue if they're watching more ads."
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