Crackdown on password sharing proves effective as Netflix exceeds subscriber projections | Business News
The world’s biggest streaming service Netflix has experienced significant growth due to crackdowns on password-sharing and popular shows like Baby Reindeer and Bridgerton, leading to a surge in signups.
Netflix has reported a growth of eight million subscribers in the three months leading up to June, surpassing the initial expected figure of five million by analysts. This growth can be attributed to the implementation of policies to prevent multiple people from sharing a single login worldwide.
The crackdown on password-sharing was enforced in the UK in May, resulting in a significant increase in subscribers. However, Netflix has cautioned that the effectiveness of this policy may diminish over time.
Another successful revenue-generating strategy for Netflix has been the introduction of the ad-supported cheaper tier, which saw a 34% increase in viewers.
The total number of Netflix subscribers now stands at 277 million, with plans to start streaming sports as the next revenue-raising measure.
Wrestling, specifically the weekly WWE Raw show, will be available for viewing starting in January as part of a partnership with WWE. Additionally, live American football via the NFL will be streamed on Christmas day.
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The expansion into new sports audiences is expected to attract advertisers, further boosting Netflix’s revenue.
Revenue for Netflix has reached $9.5bn (£7.39bn) in the three months, marking a 17% increase compared to the same period last year. Profits have also grown from $1.5bn (£1.16bn) a year ago to $2.15bn (£1.16bn).
