Netflix is trying to prove to the world that it’s all grown up

Netflix said that it will no longer report quarterly subscriber numbers, starting in 2025.

Editor’s Note: A version of this article first appeared in the “Reliable Sources” newsletter. Sign up for the daily digest chronicling the evolving media landscape here. In the early stages of life, a key metric is growth. As children age, their parents measure precisely how much they are flourishing in size, using charts to keep close eyes on and document the journey. But when children mature into young adults, physical growth is no longer the barometer used to judge progress. Other metrics come into play. Netflix is trying to persuade Wall Street that it is now all grown up. After squeezing out millions of additional subscribers via its password sharing crackdown and through the introduction of cheaper advertiser-supported plans, the streamer knows that its growth spurts are coming to an end — and now it wants investors to stop obsessing over those pesky membership numbers and instead focus on other metrics. “In our early days, when we had little revenue or profit, membership growth was a strong indicator of our future potential,” Netflix told shareholders Thursday as it reported quarterly earnings. “But now we’re generating very substantial profit and free cash flow. We are also developing new revenue streams like advertising and our extra member feature, so memberships are just one component of our growth.” To that end, Netflix said that it will no longer report quarterly subscriber numbers, starting in 2025. Alas, the metric that Wall Street has forever judged Netflix on — the metric that prompted legacy media companies to burn endless piles of cash in their bids to compete with the streamer — will be retired. It’s going the way of the woolly mammoth, Netflix said. Goodbye!