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Netflix Subscription Escalates 8%, As It Starts Cracking Down Password Sharing
Last Updated on: September 21st, 2024
By the end of June, Netflix reported a net profit of $1.48 billion for the last three months. The company also saw 5.89 million new subscribers. On Wednesday, Netflix shared that its subscriptions rose by 8%, and there has been a rise in quarterly revenues as well.
Netflix reported –
?We remain focused on: creating a steady drumbeat of must watch shows and movies; improving monetisation; growing the enjoyment of our games; and investing to improve our service for members.?
The earnings for the second quarter were more than expected, while the revenues increased, but it was less than expected. The expected earnings per share were $2.86 per share, while the real earning was $3.29 per share. On the other hand, the expected revenue was $8.30 billion, while the real revenue was $8.19 billion.
According to a report by CNBC,
?The earnings report comes soon as investors look for more information on the rollout of Netflix?s ad-supported streaming tier and push to boost subscriptions by rooting out account sharing.?
However, Netflix spokespersons also added that it is too early to show a breakdown of the revenue from the ad-supported tier, which was introduced last year. Furthermore, it is also difficult to talk about the accounts that have come due to the new password policy.
These happened amidst Netflix?s border crackdown on password sharing in the United States, as it claimed on Wednesday, that it will soon launch a new policy for the rest of its customers. Furthermore, its stock fell by 8% in after-hours trading.
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