Netflix is an American subscription-based online streaming service.
Netflix appears to have effectively addressed the issue of password sharing, having attracted 8.8 million new subscribers. As a result, the streaming platform is now gearing up for a potential price increase.
Netflix, the sole profitable major streaming service, has chosen not to follow competitors such as Walt Disney in raising ad-free subscription prices this year. Instead, it has focused on restricting password-sharing beyond household boundaries, with the aim of tapping into the vast audience of over 100 million viewers who access its content without an official subscription. The online streaming platform unveiled its most recent quarterly results on Wednesday.
Also Read | Netflix May Tap Price Hikes After Success Of Password-Sharing Crackdown
Despite the strike by Hollywood actors and writers that posed a threat to the release of new shows, the well-known digital streaming platform managed to attract approximately 8.8 million new subscribers in the past three months.
In May the Silicon Valley giant expanded its crackdown on users sharing passwords with people beyond their immediate family, as it seeks to shore up revenue.
To convert non-paying users, Netflix has introduced "borrower" or "shared" accounts, in which subscribers can add extra viewers for a higher price, or transfer viewing profiles to new accounts.
In a separate bid for revenue, Netflix launched an ad-subsidized offering around the same time as the crackdown and later eliminated its lowest priced ad-free plan.
The ad-supported tier, launched late last year, costs $7.
During the third quarter, the company reported revenue of $8.542 billion and forecasted fourth-quarter revenue to reach $8.69 billion.
The net profit saw a substantial 20% increase, reaching $1.68 billion, exceeding the company's initial forecast. Notably, Netflix's stock price surged by over 11% in after-hours trading.
(With inputs from AFP)