Netflix's subscriber numbers witnessed a remarkable increase in the past three months, with 5.9 million new users signing up. This figure is nearly three times higher than what analysts had anticipated after the company implemented measures regarding password-sharing.
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LOS ANGELES, CALIFORNIA - JULY 19: The Netflix logo is displayed at Netflix offices on July 19, 2023 in Los Angeles, California. Members of SAG-AFTRA, Hollywood's largest union which represents actors and other media professionals, have joined striking WGA (Writers Guild of America) workers in the first joint walkout against the studios since 1960.
Subscribers Growth
As Netflix released its second-quarter earnings report, the company claims that its efforts to curb password-sharing are yielding positive results. According to a report from The Verge, the streaming giant witnessed a notable surge in its global subscriber base, with 5.9 million new members joining during the period from April to June.
Netflix reports that its revenue has experienced an increase across all its regions, with signups surpassing cancellation rates. The company highlights the positive trend of borrower households converting into full-paying Netflix memberships, indicating a healthy progression.
Additionally, there has been an increase in users adding extra members to their accounts, further contributing to the company's growth. Notably, the US and Canada accounted for a substantial portion of this growth, welcoming 1.17 million new subscribers in the same timeframe.
In its recent quarterly financial report, the company also revealed a profit of $1.8 billion, generated from revenues amounting to $8.3 billion. Based on a report from The Guardian, the streaming giant's total global subscriber count has now reached 238 million.
Expanding Outside US
Expanding its approach beyond the US, Netflix has now also implemented the paid sharing policy in Canada, New Zealand, Portugal, and Spain. Netflix is extending its efforts to combat password sharing and will now address this issue in all the countries where it operates.
Initially, the company's password-sharing policy was introduced in the US, with notifications to users about an additional $7.99 per month charge starting in late May. As per Chief Financial Officer Spencer Neumann, the majority of the company's revenue growth this year will be derived from new paid memberships.
Also Read: Netflix: Profile Transfer Update Allows Users to Bring their Data to an Existing Account, Here's How
Netflix's core focus on streaming and its vast international presence has given it a significant advantage over its competitors. While other companies may rely on traditional TV channels and theatrical releases, Netflix's emphasis on streaming has allowed it to adapt to the evolving entertainment landscape.
Writers', Actors' Strike
Due to the ongoing strikes by Hollywood writers and actors, Netflix has decided to reduce its spending on content for this year. As a result, Wall Street Journal reported that the company has revised its free cash flow projection to $5 billion, which is higher than its previous estimate of $3.5 billion.
Co-Chief Executive Ted Sarandos stated, "This strike is not the outcome that we wanted." Netflix had anticipated reaching new contracts with the unions by this time and remains dedicated to reaching an agreement at the earliest possible opportunity.
Related Article: Netflix Password Sharing Crackdown is Here, How to Transfer Profiles to Avoid Extra Charges
