After banning password sharing
Netflix is gaining a surprising number of customers
7/20/2023 1:17 am
Netflix has been taking action against password sharing for some time – and apparently with success. In any case, the subscription numbers are increasing significantly. In terms of sales, however, analysts had hoped for more.
A surprisingly high influx of subscribers isn’t reflected in Netflix’s balance sheet as hoped. The streaming service announced quarterly revenue below market expectations after the market closed. The outlook for the current quarter was also disappointing. “While we’ve made steady progress, we still have more work to do to accelerate our growth,” the company said.
Netflix has been taking action against the previously tolerated sharing of access data for some time. And that is bearing fruit: the streaming pioneer has gained a total of 5.9 million customers in the past few months – about three times as many as expected. At the same time, competition in the largely saturated markets of North America and Europe is becoming increasingly fierce. In response, the company introduced an ad-supported subscription. In return, the cheapest, ad-free subscription option was dropped in some states
Sales increased in the past quarter by 2.7 percent to 8.2 billion dollars. However, analysts had predicted $8.3 billion. The profit, on the other hand, surprised positively at 1.5 billion dollars. For the current quarter, Netflix is forecasting revenues of $8.5 billion, $200 million less than experts had forecast. The stock fell 3 percent in after-hours trading. Like the entire film and television industry, Netflix is affected by the double strike by US actors and screenwriters. This has brought numerous productions to a standstill, but also ensures that the streaming provider has to spend less on content.