Netflix said it grew its subscribers by 9.33 million worldwide in the first quarter, double what Wall Street expected.
Its performance was boosted by the company’s crackdown on password sharing, which led to new signups, as well as its cheaper, ad-supported option. The ad tier costs less ($6.99 per month) than adding a member from outside your household ($7.99 per month).
Netflix “added more subscribers than many analysts, including myself, expected,” wrote Emarketer senior analyst Ross Benes. “This indicates that password sharing was even more common than previously thought, as Netflix continues to convert freeloader viewers into paying users.”
There could be even more growth to come, as the crackdown helped attract nearly 30 million subscribers in FY23, while an estimated 100 million users are sharing their passwords , Macquarie wrote in a research note.
Netflix said its ad-supported level increased 65% quarter-over-quarter, following sequential increases of nearly 70% in the previous two quarters. More than 40% of listings on its markets that offer the listing level are for this option.
The folks at Disney will certainly be watching closely, as the company prepares to tighten up password sharing at Disney+ this summer, with a full crackdown coming in the fall.
Warner Bros. Discovery also announced that it would begin limiting password sharing at streamer Max later this year.
So the crackdown on password sharing continues to be a win for Netflix, even as it effectively gives its rivals a road map to copy.
businessinsider
