Streaming giant says it added nearly 6 million customers after restricting the sharing of accounts between households.
Published On 20 Jul 202320 Jul 2023
Netflix has announced the addition of nearly six million new subscribers following its crackdown on password sharing.
In an earnings release on Wednesday, the streaming giant said it ended the last quarter with about 238 million subscribers, up 5.9 million since the company began restricting the sharing of accounts to a single household.
Netflix said profit in the April-June quarter came in at $1.5bn, with expectations that revenues will accelerate in the second half of this year.
Both figures marked an improvement in Netflix’s fortunes compared with the first quarter, when the entertainment company reported 1.75 million new subscribers and a profit of $1.31bn. Revenue, however, fell short of expectations, with sales hitting $8.2 bn.
“While we’ve made steady progress this year, we have more work to do to reaccelerate our growth,” the company said in a quarterly letter to shareholders.
Netflix is battling to regain market share after losing nearly 1.2 million subscribers in the first six months of 2022, the first decline in a decade, after a viewership boom during the COVID-19 pandemic.
Netflix is also grappling with the fallout of the Hollywood actors and writers’ strike. The first industry-wide walkout in six decades has shut down numerous television and film productions, although Netflix has an advantage over many other entertainment companies as it makes much of its content overseas.
In November, Netflix announced the launch of a cheaper subscription service that includes advertisem*nts as part of its effort to find new revenue sources amid intensifying competition among streaming services.
Netflix said in its earnings release that it would phase out its cheapest advertisem*nt-free plan, in an apparent effort to encourage people to switch to pricier plans or plans that include advertisem*nts.
Investors on Wednesday signalled unease with Netflix’s outlook despite its growing subscriber base, with the streaming giant’s shares falling 8 percent.
Source
:
Al Jazeera and news agencies
FAQs
Netflix saw a boost in subscriber numbers at the end of last year after banning people from sharing accounts and introducing cheaper plans with adverts. Netflix saw a surge in new subscribers at the end of last year, attributed in part to the streaming giant bringing in a ban on password sharing.
Has Netflix profits dropped since password sharing? ›
Netflix says its profits have soared in the first three months of this year, partly thanks to a crackdown on password sharing.
What is the effect of Netflix password sharing crackdown? ›
Netflix has seen a rise in subscribers and a boost to profits as a result of its crackdown on password sharing. The streaming platform added 9.33 million new memberships during Q1, 7.5 million more than the same time last year, with take-up of its ad-funded membership up 65% compared to last quarter.
How many people are subscribed to Netflix after password sharing? ›
Netflix has now hit a record high of very nearly 270 million global subscribers. The added customers helped the video service bring in $9.37 billion in revenues for the first quarter, again beating Wall Street estimates. Article continues after video.
Can I share my Netflix account with family in a different home? ›
A Netflix account is meant to be shared by people who live together in one household. People who are not in your household will need to use their own account to watch Netflix. Learn more about sharing Netflix. Account owners can buy an extra member slot and invite people outside their household to use Netflix.
Is Netflix losing subscribers in 2024? ›
Quarterly Netflix subscribers count worldwide 2013-2024
Netflix had around 277.65 million paid subscribers worldwide as of the second quarter of 2024. This marked an increase of over eight million subscribers compared with the previous quarter.
How will Netflix know who is in your household? ›
We do not collect GPS data to try to determine the precise physical location of your devices. If a Netflix Household hasn't been set, we will automatically set one for you based on IP address, device IDs, and account activity.
How much does it cost to add a second user to Netflix? ›
Current customers can buy an extra membership to their main subscription for an additional $7.99 per month.
How will Netflix identify password sharing? ›
Netflix detects password sharing through analysis of IP addresses, device IDs, and usage patterns, allowing them to identify instances of shared accounts and address them accordingly.
What happens if Netflix catches you sharing accounts? ›
A one-time code will be sent to the account's registered phone number or email address, and the user will have 15 minutes to input the code or be locked out from Netflix.
Or, upgrade your Netflix plan to allow more devices to watch at the same time (up to 4 with the Premium plan).
How many families can share a Netflix account? ›
A Netflix account is for use by one household. Everyone living in that household can use Netflix wherever they are — at home, on the go, on holiday — and take advantage of new features like Transfer Profile and Manage Access and Devices.
What are the results of Netflix password sharing crackdown? ›
NEW YORK (AP) — Netflix's subscriber and earnings growth accelerated in its latest quarter as the video streaming service benefits from a crackdown on freeloading viewers, an expansion into advertising and an acclaimed programming lineup.
Did Netflix lose or gain subscribers? ›
Netflix reported 84.11 million paid streaming subscribers across the United States and Canada in the second quarter of 2024. After a decline in the U.S. and Canadian subscriber base during the first nine months of 2022, this marked a growth of nearly nine million compared with the same quarter of the previous year.
Did Netflix reverse password sharing? ›
Netflix started cracking down on password sharing in summer 2023. If you want to watch 3 Body Problem, you can only watch it on Netflix. And if you were kicked off a shared account after Netflix ended password sharing last year, you'll need to subscribe on your own.
Why are people still subscribing to Netflix? ›
Standout content, global availability, live events, video games and reliability make it a winner.
