Netflix's Changing Metrics and Investor Expectations

Netflix is transitioning to a new phase where traditional metrics of subscriber growth are becoming less emphasized. Instead of focusing solely on subscriber numbers, the company is moving towards evaluating revenue generation, particularly from its advertising model. Analysts are predicting significant growth in this sector, with estimates suggesting that a sizable portion of new subscriber signups is now through the ad-supported tier. This shift indicates a maturation of the company as it adapts its valuation approach and aligns with investors' shifting expectations regarding profitability.