Last year, popular streaming platform Netflix cracked down on the widespread practice of password sharing in an effort to boost subscriber growth. Although many users did not like it and the company's management feared a strong backlash, it now appears that the move paid off. This is evidenced by the influx of new subscribers in the first quarter of this year.
Bloomberg reported that Netflix saw an increase of 9,33 million subscribers in the first quarter of this year. At the same time, analysts predicted that Netflix would gain around 4,84 new users during this period, which means that the platform almost doubled their estimates.
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The agency attributes the influx of new subscribers to Netflix's crackdown on the previously widespread practice of password sharing. The company estimated that over 100 million users are using an account that they are not paying for. The increase in subscribers was also said to be due to the offer of attractive original shows, such as The Problem of Three Bodies, You Won't Fool Me a Second Time or Griselda.
In addition to beating estimates for new subscriber growth, Netflix also beat earnings forecasts. In the first quarter of this year, it took in $9,33 billion (almost 221 billion CZK), while it was expected 9,26 billion dollars. Net profit then reached 2,33 billion dollars (approximately CZK 55 billion), which was also above expectations. These results boosted Netflix's market value to more than $260 billion (over 6 trillion CZK).
However, not everything is bathed in sunshine. In a letter to investors, Netflix executives said they expect fewer new subscribers during the current quarter. Moreover, at the end of last week, the company's shares fell by 8 %, although they have grown by up to 25 since the beginning of the year %.
