Netflix adds 6 million subscribers after password crackdown
Netflix said subscriptions to the media streaming service climbed by nearly 6 million in the wake of its crackdown on password sharing in Saudi Arabia.
The streaming giant finished the recently ended quarter with a total of 238 million subscribers and a profit of $1.5 billion, according to an earnings release.
The pickup in subscribers came as a potentially crippling writers and actors strike hits the US entertainment industry, but with analysts saying Netflix is better positioned than its rivals to weather the storm.
“We are constantly at the table negotiating with everyone across the industry,” Netflix co-chief executive Ted Sarandos said during an earnings presentation.
“We need to get to this strike to a conclusion so that we can all move forward.”
Revenue came in lower than expectations with Netflix posting $8.2 billion in sales over the April to June period, pushing the company’s shares down more than 8 percent in after hours trading on Wall Street.
Netflix in May expanded its crackdown on users sharing passwords with people beyond their immediate family as it seeks to shore up revenue after a rough patch last year.
Earlier this year the company complained that more than 100 million households were sharing accounts at the service.
“I was ecstatic with the results; I think they hit the ball out of the park with subscriber growth.”
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.
Netflix launched an ad-subsidized offering around the same time as the crackdown, and on Wednesday eliminated its lowest priced ad-free plan that cost $10 a month in the US.
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