The following video is part of our "Motley Fool Web Investor" series, in which Chief Technology Officer Jeremy Phillips discusses topics across the investing world.
In today's edition, Jeremy does a deep dive into the metrics behind his favorite business model: Web-based subscriptions. He reveals the three most important metrics to track when investing in one of these businesses -- subscriber acquisition cost, average revenue per user, and churn.
Jeremy Phillips has no positions in the stocks mentioned above. The Motley Fool owns shares of Ancestry.com, Amazon.com, and Salesforce.com. Motley Fool newsletter services recommend Ancestry.com, Amazon.com, Salesforce.com, and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
3 Things That Can Go Wrong for Netflix on Monday
Momentum is in Netflix's corner, but valuation and growth concerns, and even the upcoming Winter Olympics, can shake things up for the streaming-video pioneer.
3 Things to Watch in Netflix's Earnings Report
The market's biggest winner in the past decade releases its fourth-quarter earnings numbers on Monday.
Why 2017 Was a Year to Remember for The Walt Disney Company
In the future, Disney investors will look back on 2017 as a year of game-changing importance.