Netflix adds 9.3 million subscribers, adapting streaming strategy effectively

Netflix exceeded analysts' expectations, gaining over 9 million subscribers in Q1, reaching a record high of 269.6 million. Despite this, there was a decrease from the previous quarter's exceptional growth of 13 million subscribers. Netflix plans to halt sharing quarterly subscriber numbers in 2025.

Revenue amounted to $9.37 billion with earnings per share hitting $5.28, surpassing Wall Street forecasts. However, the stock experienced a decline in after-hours trading, despite its previous success on Wall Street.

Analysts attribute much of Netflix's past success to its established business model but note recent efforts to diversify and innovate. While competitors focus on original content, Netflix is investing in live sports, video games, and licensing others' content. The company aims to shift from being solely subscription-based to embracing ads.

Netflix's recent strategies indicate a departure from its previous focus on big-budget productions, opting for a more varied entertainment portfolio. Partnering with other studios and expanding into live sports and gaming, Netflix aims to attract a broader audience.

The introduction of an ad-supported subscription tier has seen significant growth, hinting at potential future revenue streams. Netflix's decision to stop sharing subscriber numbers reflects its evolving revenue model, emphasizing additional revenue streams beyond subscriber count.