{"id":141520,"date":"2022-10-19T15:36:45","date_gmt":"2022-10-19T10:06:45","guid":{"rendered":"https:\/\/centralrecorder.com\/netflix-wants-to-make-revenue-not-subs-the-metric-of-success\/"},"modified":"2022-10-19T15:36:58","modified_gmt":"2022-10-19T10:06:58","slug":"netflix-wants-to-make-revenue-not-subsist-on-the-metrics-success","status":"publish","type":"post","link":"https:\/\/centralrecorder.com\/netflix-wants-to-make-revenue-not-subsist-on-the-metrics-success\/","title":{"rendered":"Netflix wants to make revenue, not subsist on the Metrics Success"},"content":{"rendered":"\n
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Adding subscribers has been Netflix\u2019s bread and butter for measuring the streamer\u2019s success for as long as it\u2019s been around. But as the company continues to grow, Netflix\u2019s leadership indicated on Tuesday it\u2019s no longer the only metric they want Wall Street and the industry at large to evaluate them on moving forward. <\/p>\n

After seeing some positive subscriber growth in Q3 and forecasting an even greater result for Q4 2022, Netflix announced in its letter to shareholders Tuesday that it would no longer provide guidance on the streamer\u2019s paid membership in future quarters. The prediction for Q4 2022 was that Netflix will add 4.5 million more subscribers. However, the internal forecasts regarding paid net additions will be canceled after this quarter. <\/p>\n

It\u2019s a \u201cpretty minor change,\u201d as Spencer Wang, Netflix\u2019s VP Finance, IR and Corporate Development, mentioned on Tuesday\u2019s earnings interview. That\u2019s because the streamer will still give shareholders and analysts guidance on everything else, including revenue, operating income, diluted earnings per share and operating margin, and it will even continue to report global and regional paid subscribers. <\/p>\n

\n\t\t\t\t\t\t\t\t\t\"Netflix<\/p><\/div>\n

But as Wang explained, a single subscriber shouldn\u2019t just be compared apples to apples, especially if you\u2019re comparing it to other streaming services. And it\u2019s why Netflix wants you to consider its revenue, which for Q3 beat Wall Street expectations and hit $7.9 billion, as the main metric for its success. <\/p>\n

\u201cFocusing on subscribers in our early days was helpful, but now that we have such a wide range of price points, different partnerships all over the world, economic impact of any given subscriber can be quite different,\u201d Wang said. \u201cThat\u2019s particularly true if you\u2019re trying to compare our business with other streaming services. So that\u2019s why we\u2019ve been increasingly focused on revenue as our primary, top line metric.\u201d <\/p>\n

Netflix will also be developing new revenue streams for 2023. This includes the ad supported pricing tier next month and some solutions to curb password-sharing that will roll out in 2023. \u201cmembership is only one aspect of the revenue picture.\u201d <\/p>\n

It will be up to Wall Street if they agree with that notion, and Netflix\u2019s stock price has already After hours, the surge was 14%<\/a>Trading based on these optimistic Q4 forecasts <\/p>\n

\n\t\t\t\t\t\t\t\t\t\"Netflix,<\/p><\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

Adding subscribers has been Netflix\u2019s bread and butter for measuring the streamer\u2019s success for as long as it\u2019s been around. But as the company continues to grow, Netflix\u2019s leadership indicated on Tuesday it\u2019s no longer the only metric they want Wall Street and the industry at large to evaluate them on moving forward. After seeing […]<\/p>\n","protected":false},"author":51,"featured_media":141521,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[101,3,105,106],"tags":[],"jetpack_featured_media_url":"https:\/\/centralrecorder.com\/wp-content\/uploads\/2022\/10\/1666174008_Netflix-Wants-to-Make-Revenue-not-Subs-the-Metric-of.jpg","_links":{"self":[{"href":"https:\/\/centralrecorder.com\/wp-json\/wp\/v2\/posts\/141520"}],"collection":[{"href":"https:\/\/centralrecorder.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/centralrecorder.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/centralrecorder.com\/wp-json\/wp\/v2\/users\/51"}],"replies":[{"embeddable":true,"href":"https:\/\/centralrecorder.com\/wp-json\/wp\/v2\/comments?post=141520"}],"version-history":[{"count":1,"href":"https:\/\/centralrecorder.com\/wp-json\/wp\/v2\/posts\/141520\/revisions"}],"predecessor-version":[{"id":141522,"href":"https:\/\/centralrecorder.com\/wp-json\/wp\/v2\/posts\/141520\/revisions\/141522"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/centralrecorder.com\/wp-json\/wp\/v2\/media\/141521"}],"wp:attachment":[{"href":"https:\/\/centralrecorder.com\/wp-json\/wp\/v2\/media?parent=141520"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/centralrecorder.com\/wp-json\/wp\/v2\/categories?post=141520"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/centralrecorder.com\/wp-json\/wp\/v2\/tags?post=141520"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}