Netflix announced it will stop disclosing its subscriber count beginning in 2025, shifting focus to revenue, operating margin, and hours watched. The video-streaming giant reported third-quarter revenue of $9.8 billion, up 15% year over year, with operating margin expanding to 30% from 22.4% a year ago. It added more than 5 million subscribers in the quarter, and average revenue per subscriber rose 5% in North America. Management believes time spent on the platform is now a more important metric as the company matures. Netflix is also building out advertising revenue, which is doubling year over year, and venturing into live events and gaming to drive further growth.
Netflix IncNetflix will stop reporting subscriber numbers, shifting focus to revenue and margin; impact on stock is mixed as it reduces transparency but emphasizes profitability.