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Netflix adds 6M subscribers after password crackdown

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Agence France-Presse

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="Illustration picture shows logo of the US Online Streaming company Netflix logo displayed on devices screen, Dresden, Germany, March 25, 2019. Filip Singer, EPA-EFE/File " src="https://sa.kapamilya.com/absnews/abscbnnews/media/2023/overseas/04/19/netflix.jpg"/><figcaption>Illustration picture shows logo of the US Online Streaming company Netflix logo displayed on devices screen, Dresden, Germany, March 25, 2019. <em>Filip Singer, EPA-EFE/File </em></figcaption></figure></div><p>SAN FRANCISCO, United States - Netflix on Wednesday said subscriptions to the streaming television service climbed by nearly 6 million in the wake of its crackdown on password sharing.</p><p>The streaming giant finished the recently ended quarter with a total of 238 million subscribers and a profit of $1.5 billion, according to an earnings release.</p><p>&quot;We&#x27;re seeing healthy conversion of borrower households into full paying Netflix memberships as well as the uptake of our extra member feature,&quot; Netflix said in a letter to shareholders.</p><p>Revenue however came in lower than expectations with Netflix posting $8.2 billion in sales over the April to June period.</p><p>The company&#x27;s shares lost more than 5 percent in after hours trading on Wall Street.</p><p>Netflix in May expanded its crackdown on users sharing passwords with people beyond their immediate family as it seeks to shore up revenue at the leading streaming television service.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/05/24/23/netflix-expands-password-sharing-crackdown-worldwide">Netflix expands password-sharing crackdown worldwide</a></li></ul><p><br/>In its earning statement, the company said that the policy would expand to all its markets worldwide.</p><p>Netflix said earlier this year that more than 100 million households were sharing accounts at the service &quot;impacting our ability to invest in great new TV and films.&quot;</p><p>In most markets, Netflix has introduced &quot;borrower&quot; or &quot;shared&quot; accounts, in which subscribers can add extra users for a higher price or transfer viewing profiles to separate accounts.</p><p>Netflix launched an ad-subsidized offering around the same time as a crackdown, and on Wednesday eliminated an ad-free basic plan that cost $10 a month in the US.</p><p>For now, advertising revenue remains just a fraction of the company&#x27;s overall activity, but Netflix has high hopes it will grow in the coming quarters.</p><p>&quot;Building an ads business from scratch isn&#x27;t easy and we have lots of hard work ahead, but we’re confident that over time we can develop advertising into a multi-billion dollar incremental revenue stream,&quot; Netflix said in the letter to shareholders.</p><p>Analyst Ross Benes of Insider Intelligence estimates that Netflix will generate $770 million in advertising revenue in the US this year, and more than $1 billion by 2024.</p><p>&quot;Netflix&#x27;s increased focus on password sharing will occur alongside heightened pressure to expand ad revenue,&quot; Benes said.</p><p>&quot;That is not a coincidence. As the service&#x27;s subscriber base plateaus in more countries, Netflix will focus on moving price-sensitive freeloaders to its cheaper ad-supported plan.&quot;</p><p>The earnings report came as Netflix and other film and television makers see productions halted by an actors strike in the United States.</p><p>Screen Actors Guild (SAG-AFTRA) members joined writers who have been on strike for weeks, triggering the first industry-wide walkout for 63 years and effectively shutting down Hollywood.</p><p>Netflix co-chief executive Ted Sarandos said on an earnings call in April that the company has a &quot;pretty robust slate of releases&quot; and a large base of upcoming films and shows from around the world to help it endure a strike.</p><div><strong>gc/arp</strong></div><div><strong>© Agence France-Presse</strong></div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=2407822" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>

Netflix on Wednesday said subscriptions to the streaming television service climbed by nearly 6 million in the wake of its crackdown on password sharing.