October 19, 2023, 10:17 am
Netflix announced this year that it would crack down on password sharing. This strategy appears to have paid off, as the streaming service saw 8.8 million new subscribers in the last quarter.
By making password sharing impossible, Netflix was able to add 8.8 million new subscribers in the third quarter of this year. In the same quarter last year there were 2.4 million. The company says the “chaotic response” after ending the ability to share passwords was less than expected. 30 percent of new Netflix members signed up for the new, cheaper version of the ad-supported and ad-supported service. 70% of new hires came from outside the United States. The streaming service now has a total of 238 million subscribers worldwide.
Netflix generated $8.58 billion in sales last quarter. An increase of 7.8 percent compared to the same period last year. The positive result led to a positive revision of expectations for the fourth quarter. Forecasts have now been issued for a turnover increase of 11 percent (€8.78 billion).
The Hollywood strikes, in which actors and writers protested, among other things, compensation for their work through streaming services, also had an impact on Netflix’s revenues. Although the writers’ strike ended a few weeks ago, the Actors Guild is still negotiating with the film parties, and there is no work ongoing. This has caused delays and cancellations of films over the past five months. As a result, Netflix’s expenses decreased significantly. The operator invested $13 billion in new content this year. Before the strike, Netflix expected this amount to reach about $17 billion.