Netflix adds millions of subscribers and sees profits soar after crackdown on password sharing -TGN

Netflix revealed new successes in its recent quarterly earnings report, adding millions of subscribers and making profits after their crackdown on password sharing. In an effort to increase profitability and prevent multiple households from using the same account, Netflix cracked down on password sharing in May. The decision caused a spike in Netflix subscribers, as people no doubt wanted to keep using the service even if they had to pay.

Now, Weekly entertainment reports that Netflix has released their quarterly earnings report, indicating an increase in subscriber numbers and profits for the company since eliminating password sharing. Netflix reported an increase of 5.9 million subscribers to their service, as well as a 3 percent increase in revenue from the same quarter last year. Netflix’s revenue this quarter was $ 8.2 billion, a great success for the streaming service.

Can Netflix sustain their growth in 2023?

Netflix’s growth in the last quarter was likely related to its crackdown on password sharing. However, the streamer is not done making changes to their business model to make even more profit this year. Recently, Netflix removed their cheapest ad-free plan in the US and UK, meaning subscribers will have to pay $15.49 per month if they don’t want an ad-supported tier. It remains to be seen how this will affect Netflix’s revenue going forward.

In addition to internal changes, Netflix’s success in 2023 may be impacted by ongoing writers’ and actors’ strikes in Hollywood. Due to the strikes, any Netflix original movies or TV series that have not yet completed production Stranger things season 5, can only continue after the strikes are over. A drought of new content could send Netflix’s subscriber base down, despite the success it’s seen in its most recent quarter.

The big subscriber boost Netflix received could mean that other streaming services like Max or Hulu will implement a similar rule in the future. However, this may depend on how many people share their passwords for those services, and whether the occurrence of those services would lead to a significant increase in subscriptions. That Netflix has had a great quarterly report, it remains to be seen what else the streaming service will do to boost profits going forward.

Source: OW