Netflix’s subscriber growth rebounded in the second quarter of 2023, with the company adding 1.3 million new subscribers.
The number of paid customers to Netflix increased by 8% year over year to 238.39 million at the end of the third quarter.
The company’s subscriber base rose in the weeks following the sharing policy rollout, according to a report from Antenna.
Drivers of that significant rise included the company’s Q4 2022 introduction of a lower-priced, ad-supported subscription tier and the May 23 introduction of paid sharing in the majority of its territories.
Amazon Prime Video, Disney+, and HBO Max are just a few of the streaming services that Netflix is up against in the market. However, the corporation has a competitive advantage because to its substantial content library and its global presence.
Netflix estimates that as many as 100 million households are sharing passwords, which is costing the company billions of dollars in lost revenue. The new policy is designed to get these households to pay for their own accounts.
In addition to the password-sharing crackdown, Netflix also benefited from the release of several popular new titles in the second quarter, including “Stranger Things” season 4 and “The Umbrella Academy” season 3. These titles helped to drive subscriber growth in the U.S. and internationally.
As of 11:59 a.m. on Thursday, Netflix’s shares were down from $477.59 when the markets closed on Wednesday to $434.40.
“We’re investing heavily in great content and are confident in our ability to continue to grow our business,” Hastings said.
Netflix is also planning to launch a lower-priced, ad-supported streaming tier in the near future. This tier is expected to help the company attract new subscribers and generate more revenue.
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