Netflix's Price Increases Have Worked Wonders
This week, leading video streamer Netflix (NASDAQ: NFLX) provided the most detailed breakdown of its subscriber base ever. The disclosure comes as the company prepares to overhaul its financial reporting structure starting when it releases fourth-quarter results next month.
"Starting with our Q4'19 earnings report in January 2020, we plan to disclose revenue and membership by region, which is how we think about our business," the company wrote in its October letter to shareholders. Those regions will be the United States and Canada (UCAN); Europe, the Middle East, and Africa (EMEA); Latin America (LATAM); and Asia-Pacific (APAC).
The data included average revenue per paying streaming membership -- essentially an average revenue per user (ARPU) figure when you exclude free trials. Netflix is also about to stop disclosing free trial memberships, since the company says that figure is a "less insightful predictor of future growth than in the past." It's clear now that Netflix's price increases have absolutely worked wonders for the tech company's fundamentals.
Source Fool.com
