Netflix will stop telling people how many subscribers it exactly has starting next year and instead will only "announce major subscriber milestones as we cross them."
In a letter to investors obtained by Business Insider, Netflix explained that regular reports of subscription is no longer a good indicator of its growth as "memberships are just one component of our growth."
(Photo : Thibault Penin via Unsplash)
Netflix Touts Other Revenue Platforms for Fiscal Report Changes
The company pointed to the other avenues of profit it has launched over the past months on top of its subscription revenue, including payments from the ads it rolls out for its basic membership tier.
Netflix has hinted at the stop to its subscription count report earlier after it stopped posting quarterly guidance on subscription growth last year.
The announcement was made after Netflix reported to have added 9.3 million more paid subscribers in the previous quarter, totaling nearly 270 million active subscribers globally.
Also Read: Netflix Records 23 Million Monthly Users on Ad Tier Plan
Password-Sharing Crackdowns, Costlier Ad-Free Memberships Hound Netflix Subscriptions
Although Netflix did not spell it out, the move came in time as the company is hit by slower subscription growth amid password-sharing crackdowns and higher prices for its ad-free tier.
It does not help that many more video-streaming platforms have popped up over the years, many of which offer much more affordable subscription prices for the same service.
Visits to video piracy websites have also been noted to grow by 12% in the past four years as more people turn to affordable options to watch shows and movies across multiple streaming services, according to FastCompany.
Most digital piracy was recorded coming from the US and India where the so-called "subscription fatigue" is the most prominent.
So far, only a few streaming companies have started addressing this revenue leakage and encourage more viewers to watch their products legally.
Related Article: Netflix to Cancel Ad-Free Basic Subscription to Boost Ad-Tier Plans in Canada, UK
