Why Netflix will stop telling everyone its subscriber count

Netflix from next year onwards will not be telling its subscriber count, rather it will only be announcing its major subscriber milestone achievement. Netflix has said that it has started doing this because it feels that the subscriber count doesn’t reflect the growth of the company.

Netflix said, “In our early days, when we had little revenue or profit, membership growth was a strong indicator of our future potential. But now we’re generating very substantial profit and free cash flow (FCF). We are also developing new revenue streams like advertising and our extra member feature, so memberships are just one component of our growth. In addition, as we’ve evolved our pricing and plans from a single to multiple tiers with different price points depending on the country, each incremental paid membership has a very different business impact.”