Netflix reached 238.4 million subscribers during the second quarter of 2023, 8% more than in the same period last year, thanks to the policies of shared account control by its users.
This is the largest number of subscribers in the history of the Netflix company, which achieved a net profit of 1,488 million dollars. In addition, it also achieved revenue of 8,187 million dollars, which represents an increase of 2.7% compared to the second quarter of 2022.
These results were particularly expected in light of the crisis generated in hollywood with the first simultaneous strike by the Screen Actors Guild of America (SAG-AFTRA) and the Screenwriters Guild in 63 years, keeping the global entertainment industry paralyzed.
After their publication, Netflix sent a letter to its investors in which it highlighted that currently 80% of its income base comes from a “successful payment model” for cases of shared accounts, which is already present in “almost all countries” where they provide service.
And it is that, after allowing the use of joint accounts and not monetizing them for years, the company based in Los Gatos (California, USA) decided to start putting brake with alternatives that have eased their bills.
Eradicating the illegal exchange of these shared passwords has been one of its priorities and in May it began notifying clients in countries such as the United States that users who live outside the family home had to join as ‘additional members’ (paying an extra cost) or pay their own subscription.
In this context, the streaming platform Netflixwhich added 5.9 million new accounts compared to the first three months of this year, forecasts a “big growth” of 7.5% in its revenue item for the next quarter.
“We expect revenue growth to accelerate in the second half of the year, as we begin to see the full benefits of the shared payment model. (…) We still have work to do to increase our growth,” the statement reads.
In addition, the shared account control strategy is accompanied by the idea to stop offering its reduced price plan with advertising for new subscribers on United States and the United Kingdomas announced by the company hours before making public its results.
“Our starting prices of $6.99 in the US and £4.99 in the UK on the model with ads were lower than those of the competition and offered the full breadth and quality of our catalog,” Netflix tried to justify about this procedure previously implemented in Canada.
THE HOLLYWOOD STRIKES, UNNOTICED FOR NOW BY NETFLIX
The company’s letter to its shareholders included a single mention to the Hollywood strikes, to indicate that the “updated forecasts” after the strikes only reveal “minor spending on content.”
A position that is in line with the one outlined by the representatives of Netflix since this simultaneous strike became official last Thursday and whose messages have been based on transmitting “tranquility” to its users because, according to them, they still maintain a “solid catalog and release schedule to last a long time.”
“We remain focused on creating a constant rhythm of programs and movies to improve the quality of life of our viewers,” the company concluded after these “satisfactory” results that keep it as the absolute leader in the streaming market. thanks to its 238.4 million customers.
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