How Netflix Dropped the Mic With Its New Subscriber Strategy

Netflix had a massive quarter.

In its earnings report for Q4, the streaming giant announced its biggest subscriber numbers to date, adding nearly 19 million paid subscribers, which pushed its numbers to more than 300 million paid accounts. In addition, the company said that 55% of the enrollment reached its advertising level, and the plan is so successful that the streamer raises pricesadding to their growing bottom line.

The news, who sent Netflix The stock, which rises to almost $ 1,000, is the last straw in the streaming industry.

Moving forward, the company reports updates on its terms.

Early last year, the streamer announced that it would stop reporting quarterly subscriber numbers and average revenue per user in Q1 2025, and the company reiterated that in a letter to investors on Tuesday, saying it would only “continue to announce paid subscriptions as we cross milestones.”

The announcement was a surprise for the TV industry in 2024, with the race of subscribers being the main focus of the streaming wars. Now, experts explain that the strategy is to pay for the company.

Streaming warfare enters a new era

Dan Rayburn, a streaming media expert, told ADWEEK that while some may accuse the platform of a lack of transparency, Netflix’s strategy of withholding quarterly subscriber numbers is smart as the company moves out of be known only as a subscription service.

“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 comes from advertising,” Rayburn told ADWEEK. “The number of subscribers alone does not dictate the income for the ads. It’s how many they look at, what are your CPMs, and how well you do a targeted delivery.”

According to Rayburn, the number of subscribers does not give a complete picture of the business, and even a smaller number of subscribers can lead to more revenue if they watch more advertising.

The lack of transparency around subscribers could also protect the company from fluctuations in the market.

As Brandon Katz, senior strategist of the entertainment industry at Parrot Analytics, explained, announcing that it did not report average revenue per user or subscriber numbers, Netflix anticipates an expected slowdown in growth amid its crackdown on password sharing reaching saturation.