Netflix profits after password sharing crackdown soar
Netflix has seen its profits soar in the first three months of 2024 in part due to its crackdown on password sharing.
Netflix saw 9.3 million new customers in the first quarter, bringing its total number of subscribers to almost 270 million.
The streaming giant said its profits in the first quarter jumped to more than $2.3bn.
But the firm will stop reporting key subscriber numbers from next year.
Announcing the decision, the firm said in a letter to shareholders: “In our early days, when we had little revenue or profit, membership growth was a strong indicator of our future potential”.
It added that today, subscriber numbers have become “just one component of our growth”, asking investors to focus on its profits and revenue.
Its revenue for the first quarter rose by nearly 15% year-on-year to $9.37bn.
Netflix last raised the price of its popular “standard” plan in 2022.
The firm is also pushing into areas such as sports and video games, while continuing to license material from rival media firms looking for ways to boost profits.
Analysts said the company also benefited from its global footprint, which helped it maintain a relatively strong pipeline of new shows, despite strikes that rocked Hollywood last year.
Netflix password sharing crackdown backlash
Headline: Netflix Reports Record Profits As Subscriber Growth Tops Estimates
— SuperSayin (@KnuckleZ_100) April 18, 2024
Soo basically we just proved to them that they can hike our prices and we'll continue to subscribe, more than ever🤦🏽♂️