Netflix Suffers Big Fall Despite Positive Results

This disappointing day followed a weak revenue forecast and confirmation that it will stop reporting subscriber numbers next year.

Despite this fall, Netflix is still up 14% so far this year following a strong start to 2024. Expectations for the streaming giant’s Q1 results had been climbing recently, as analysts predicted excellent gains. When the results were published, they revealed the company’s best start to any year since 2020.

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The decision to stop reporting membership numbers and revenue per subscriber from Q1 2025 is an attempt to shift the focus to other areas such as profit and sales. Analysts have traditionally looked at the firm’s subscription numbers to assess the NFLX performance. Netflix reported in its letter to investors on Thursday that it expects its subscriber gains to be slower in the next period, with revenue set to increase by 16% in the second period of 2024.

The firm’s crackdown on viewers sharing passwords has helped boost the customer count. While executives had feared a public backlash from their efforts to stop password sharing, they managed to increase the firm’s user base by 9.33 million in Q1. This was far better than the average estimate by analysts, which put the increase at 4.84 million.

The company letter pointed out that:

With more than two people per household on average, we have an audience of over half a billion people.

Netflix stated that it’s the first time that any entertainment company has programmed for that size of audience.