The Clap
Netflix (NASDAQ: NFLX) will stop forecasting paid subscriber adds to shift consumers’ focus to revenues and profit.
The Deets
The company will continue to provide forecasts for revenue and income, but will only report new subscribers during the quarter without providing a forecast.
Netflix highlighted that revenues and profits will hold larger importance in the coming period, as the company looks to add multiple revenue streams; membership won’t be the only source of revenue.
Why this Matters
Netflix is looking to highlight the importance of profitability during the post-pandemic era.
The company iterated that competitors are making losses on their streaming services, while Netflix is deemed as one of the few companies making a profit.
What Now
Netflix’s stock surged more than 14% after-hours.
