The Next Game Is About To Begin
Several years ago the market leaned heavily on iPhone sales to determine the company's value, but as competition grew and refresh rates became longer, the company pivoted to address its vulnerability to one product by increasing its diversification and pushing multiple product streams (App Store, subscriptions, wearables, TV, etc).
Simples. You fight a battle you know you can win!
Netflix Originals are hugely popular and make up the majority of their biggest hits (think Squid Game, Bridgerton, The Witcher).
Not only this, the company will only report on the top 10 most-watched programmes (you don't need to know about the rest!) and undoubtedly these figures will look fantastic against their peers due to the sheer firepower Netflix has on spending.
Aside from the move to pivot attention away from subscriptions numbers, the decision to report figures weekly I think is sensible.
Markets hate uncertainty and surprises, and as the company matures it will want to address large post-earnings swings in its share price. Greater visibility of future performance may well see Netflix mature beyond the pump and dump movement of the past.
In conclusion, I think it's a bold but smart decision in the increasingly competitive streaming space - perhaps Netflix will tap into the value of the digital Metaverse next?.. you wanna play.