Netflix saw a sharp increase in subscribers between April and June 2023, thanks to the new policy of stop sharing passwords. The company has in fact announced that it has earned 5.9 million new subscribers in the second quarter of 2023, exceeding the expectations of analysts who had foreseen an increase of approximately 2 million. This is one of the best results in recent years for Netflix, which had lost around a million customers in 2021.
The growth in subscribers allowed Netflix to increase its revenues, which they achieved $8.2 billion in the quarter, with an increase of 3% compared to the same period of the previous year. However, the revenues have been slightly lower than the forecasts of the experts, which they had estimated at least $8.3 billion. This caused Netflix’s stock value to drop about 8% between Wednesday and Thursday.
Stop sharing passwords and basic plan with ads: Netflix’s moves are working
Netflix is confirmed as the only major streaming platform to be profitable, unlike its main competitors such as Disney+, which are still investing heavily to acquire new customers and fail to generate profits. In fact, Netflix achieved a net income of approximately $1.5 billion in the quarter, an increase of 3% compared to the same period in 2022. Netflix currently has well 238.4 million active subscribers worldwide.
But stopping password sharing isn’t the only news that is leading Netflix to increase its revenue. Indeed, the streaming giant has removed the ability to subscribe to the standard plan in different markets (first in Canada, then in USA and UK). The company’s plans are to push users to subscriptions with advertising, as these allow Netflix to diversify its income.
Currently, Standard Plan subscribers in the UK, USA and Canada can keep their subscription until they renew or switch plans. In Italy the standard season ticket is still active (at the price of €12.99 per month). The plan with advertising costs instead 5,49€.