Netflix’s password-sharing crackdown sees gain of 6m new subscribers
A crackdown on password sharing helped Netflix add nearly 6m subscribers, more than double what analysts had forecasted.
The company introduced its “paid sharing” programme in the UK, US and other major markets in May, charging an extra fee if users want to share passwords with people outside their households. The imitative is now present in more than 100 countries.
That policy appears to be working – in the last three months to the end of June, Netflix added 5.9m subscribers. Netflix said few people had cancelled as a result of the password changes and it believed the programme would fuel similar subscriber gains in the months ahead.
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Netflix said profit in the April-June quarter came in at $1.5bn, with expectations that revenues will accelerate in the second half of this year. “While we’ve made steady progress this year, we have more work to do to reaccelerate our growth,” the company said in a quarterly letter to shareholders.
Netflix said in its earnings release that it would phase out its cheapest advertisement-free plan, in an apparent effort to encourage people to switch to pricier plans or plans that include advertisements.
