Last Tuesday (18), Netflix released its financial report for the third quarter of 2022. In addition to the numerical data presented, a novelty was highlighted in the letter to investors: as of the first quarter of 2023, the platform will no longer disclose your subscriber estimate. According to the company, with the introduction of new financial gains, revenue becomes the main metric of streaming.
Despite the change, the platform was keen to stress that other numerical data always provided by the company will continue to be reported. Which means that we will continue to know how many subscribers the streaming has, not only counting on the projection of users for the next periods.
In addition, information such as guidance for revenue, operating income, operating margin, net income, EPS and diluted shares outstanding for the following quarter will also continue to be informed by reports to investors.
The choice for not disclosing these projections anymore happens shortly after the company faces a period of sudden drop in paying bills.
According to Netflix, however, the decision to put an end to expectations on the subject is linked to the new revenues implemented by the service, which will now have other ways to earn money, through ads and shared accounts.
Announced some time ago and being tested in some countries, the basic plan with ads of the platform will arrive in Brazil on November 3. And, as its name suggests, it will be a cheaper subscription package (R$ 18.90), which will feature advertisements displayed at an average of 4 to 5 minutes per hour.
In addition to it, the service also intends to make money with its new method of taxation of shared accounts.
Still no official date to arrive in Brazil, it is already known, however, that he will charge a user fee who share their accounts with people who live in another household. This charge, according to tests carried out in Latin America, can vary between R$9 and R$16.
Thus, with the introduction of these modalities, the number of subscribers to the platform becomes just one of the components of its financial gains, placing the company’s revenue as the main new metric of the platform.
Netflix gained subscribers in the third quarter
Aside from the news about the projection of subscribers, the Netflix report also released important numbers achieved by the company.
Exceeding estimates made in the last letter to investors, which pointed to growth of 1 million subscribers, Netflix registered no less than 2.41 million new paying users in the third quarter. Of these, 104 thousand of them only in the United States and Canada.
With this recovery, the platform reaches 223 million customers and projects hopeful data for the next quarter, with an additional 4.5 million new users expected to join streaming.
Highlighting the repercussion of series such as Dahmer: An American Cannibal and the final episodes of the fourth season of Stranger Thingsthe company’s third quarter report had a positive impact on Wall Street, causing Netflix shares to rise on Wednesday morning (19).
With information: Netflix