Netflix exceeds 277M subscribers amid password-sharing crackdown
Date
7/23/2024 5:16:15 AM
(MENAFN) Netflix announced on Thursday that it had added over 8 million new subscribers during the second quarter, bringing its total global subscriber count to more than 277 million by the end of June. This growth was largely attributed to the successful implementation of its password-sharing crackdown and the popularity of new titles like “Bridgerton,” “Baby Reindeer,” and “The Roast of Tom Brady.” Although these subscriber gains exceeded analyst expectations, Netflix cautioned that the third-quarter subscriber growth is expected to be lower compared to the same period in 2023, when the password-sharing policy had just been introduced.
Following the announcement, Netflix shares fell by 4 percent in after-hours trading, settling at USD617.32. The company reported diluted per-share earnings of USD4.88, surpassing the consensus forecast of USD4.74, and its revenue for the quarter reached USD9.56 billion, aligning with estimates. Wall Street has been closely observing the performance of Netflix’s ad-supported tier, which has seen growth due to the crackdown on password-sharing, recent price increases for ad-free tiers, and new consumer bundles such as Comcast’s “StreamSaver,” which combines Netflix with Peacock and Apple TV+.
Netflix noted a 34 percent increase in its ad-supported tier membership from the previous quarter, although it did not specify the exact number of subscribers for this option. The company acknowledged that while its advertising business is growing and becoming a more significant component of its overall revenue, building this segment from scratch will take time. Therefore, Netflix does not anticipate advertising to be a major driver of revenue growth in 2024 or 2025. Looking ahead, Netflix projected a 14 percent increase in revenue for the third quarter compared to the previous year.
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