Despite the skepticism regarding the possible effects of doing a crackdown on password sharing, Netflix remains to be unfazed about it. In fact, Netflix reported that it gained nearly 6 million subscribers despite its move to combat password sharing.
Netflix reported that they ended the second quarter of 2023 with a total of 238 million subscribers and a profit of $ 1.5 billion. “We’re seeing healthy conversion of borrower households into full paying Netflix memberships as well as the uptake of our extra member feature,” Netflix said in a letter to shareholders.
Despite the positive outlook when it comes to users, Netflix posted $8.2 billion in sales, which is lower than their expectations.
To recall, Netflix’s crackdown on password sharing is implemented in select countries including the Philippines, and it plans to expand its policy across all markets nationwide. One of the things Netflix did to address password sharing is by offering its subscribers the option to add users for a price and the option to transfer viewing profiles to separate accounts. Netflix also introduced an ad-supported tier, eliminating the basic plan in some countries.
Despite the issues currently happening in the industry, which include strikes from members of the Screen Actors Guild (SAG-AFTRA) and writers in Hollywood, Netflix co-CEO Ted Sarandos that they have a “pretty robust slate of releases” and a large base of upcoming films and shows from around the world to endure current events.
