Netflix password crackdown drives subscription growth
The corporation has over 238 million users at the end of June, up 5.9 million from March.
This was higher than expected and follows the company’s efforts to re-ignite growth after significant subscriber losses last spring.
It is also being hampered by continuing strikes by writers and actors in the United States.
As a result of the industry’s largest walkout in six decades, Netflix stated it would spend less on programming this year than projected, while CEO Ted Sarandos said, “we need to get this strike to a conclusion.”
“This strike is not what we wanted,” he remarked. He stated that the corporation was dedicated to finding a “equitable” agreement that would assist the industry go forward.
However, he noted, “We’ve got a lot of work to do.”
Since the epidemic, Netflix has faced a steep slowdown in growth as competition heats up, households battle with growing expenses, and it reaches what analysts perceive as saturation point in several of its largest areas.
It lost approximately 1 million accounts in the first half of last year. Despite the fact that it eventually more than made up for those losses, the reductions jarred the company and led it rushing to shore up its growth chances.
Customers were tempted, according to Netflix, by new options that cost less than a normal subscription.
In May, the business launched its “paid sharing” program in the United Kingdom, the United States, and other key markets, charging a fee if users want to share passwords with persons outside their families.
It charges little less than half the usual subscription price of £10.99 in the UK.
The program is now available in over 100 countries.