Netflix is Changing How It Reports Subscriber and Revenue Numbers




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Netflix N Logo

Netflix N Logo

Netflix recently finished its third quarter strong reporting growth in both subscribers and revenue. In its letter to shareholders, it also announced changes to how it will report certain data going forward.

Up until now, Netflix has categorized its reports into two sections – domestic and international. But toward the end of this quarter’s letter, the streaming service announced it will now break down its numbers into four geographic regions: Asia Pacific (APAC), Europe, Middle East & Africa (EMEA), Latin America (LATAM), and the US and Canada (UCAN).

“That means there’s more disclosure here,” said Mark Mahaney managing director and analyst at RBC Capital Markets. “It’ll probably highlight how much of the growth is coming from international markets. That’s a really key piece of information to know about Netflix.”

Netflix also said it will do away with regional subscriber guidance and start reporting globally instead.

“The move to report and guide to ‘global paid subscribers’ will potentially obfuscate the trends in the competitive landscape domestically,” Patrice Cucinello, director of technology, media, and telecommunications research at Fitch Ratings.

Some analysts like say this move is a step toward greater transparency and more detailed reporting when it comes to subscribers and revenue. However, one con might be that analysts won’t be able to see US margins compared to international. Overall, this new change provides a more accurate look at how Netflix is performing around the world.

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