In spite of its crackdown on password sharing, streaming juggernaut Netflix reported adding 5.9 million new customers globally in the second quarter of 2023. (https://www.drogueriasanjorge.com/) In the newly expanded 5.9 million subscriber pie of the top streaming platform, 1.17 million of the customers were from the United States and Canada. In the US, the platform started its crackdown on password sharing in late May. Since launch, each additional Netflix subscriber outside of a family has cost $7.99 per month. Starting in July 2023, the streaming platform in India will have a password-sharing ban in force.
With more new subscribers than cancellations, Netflix’s revenue has recently increased significantly across all its markets. The major streaming service saw a rise in the number of customers adding additional members to their accounts, as well as a promising trend of non-paying households becoming full-fledged Netflix subscribers. Spencer Neumann, the chief financial officer of Netflix, emphasized that the new premium memberships, which are mostly attributable to the launch of the password-sharing crackdown, are anticipated to account for the majority of the company’s revenue growth in the current year.
Netflix’s ad-supported tier gained traction in May and reached 5 million customers worldwide
During the quarter, Netflix made $8.2 billion in revenue. The company has increased its forecast for free cash flow for 2023 from an initial projection of $3.5 billion to at least $5 billion. The rising cost is blamed on “lower cash content spend in 2023 than originally anticipated” as a result of the ongoing Hollywood writers’ and actors’ strike, which has slowed down the creation of material for well-known shows including Stranger Things, Big Mouth, and Emily in Paris. The $6.99 ad-supported subscription tier that Netflix offers is another driver in the company’s income development. It went up 3% from the previous year.
After adding support for 1080p content and the capability to watch two streams at once, Netflix’s ad-supported tier gained traction in May and reached 5 million customers worldwide. Compared to its rivals, the company continues to profit while Disney+, Paramount Plus, and other competing streaming services continue to post losses.