Netflix stock slips 9% after it said subscriber numbers will dip
Netflix added more than 9 million subscribers last quarter, but plans to phase out reporting that data
Netflix plans to eventually phase out reporting subscriber data — and the move has investors a bit puzzled. Netflix stock closed down 9.1% on Friday, after the company reported its first quarter earnings on Thursday. The dip followed Netflix’s forecast that subscribers will be lower during the second quarter, which the company blamed on “seasonality.”
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Netflix CEO Greg Peters told investors during the company’s earnings call on Thursday that because the company has been “essentially cutting off some viewers” though its password-sharing crackdown, it is prepared to “lose some of the viewing associated with that.”
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But the streaming giant also said it plans to stop reporting subscriber growth numbers by the first quarter of 2025. That’s despite adding another 9.33 million subscribers last quarter.
Peters said Netflix will instead “focus on key metrics that matter most to the business,” such as advertising and its extra member feature.