Netflix gained 5.9 million new subscribers in the past three months, which was nearly triple the analysts' expectations. This surge came after the company took measures to prevent password sharing among households.
As the first major tech and media company to reveal their quarterly results, Netflix's performance stands out. During this time, the industry has faced strikes from writers and actors, marking the first instance of both unions walking out since the 1960s.
“This strike is not the outcome that we wanted,” co-chief executive Ted Sarandos said. He said the company hoped to reach an agreement “as soon as possible.”
Netflix unveiled its latest financial results, reporting a $1.8 billion profit and $8.3 billion in revenues for the quarter. Surpassing analysts' expectations, Netflix added around 2 million new households in the last three months due to people transitioning from shared accounts to individual subscriptions. The streaming giant now boasts a total of 238 million global subscribers.
Amid the strike over pay and the use of AI in the industry, some of Netflix's top shows and movies, like House of the Dragon, The Last of Us, Gladiator 2, and Mission: Impossible – Dead Reckoning Part Two, are expected to face delays.
Despite challenges, Netflix is considered better positioned compared to traditional media peers to navigate the strike. Last year, the company experienced a temporary loss of subscribers, but it has since rebounded and implemented measures to prevent password sharing.
More than 100 million households have engaged in password sharing, but the recent move towards "paid sharing" is anticipated to boost Netflix's revenues through 2023. The company's diverse programming, international audience, and success with overseas hits like Squid Game and Money Heist are seen as advantages.
To diversify income, Netflix introduced an ad-supported subscription last year. Recently, the company dropped its cheapest commercial-free plan in the US and the UK, aiming to attract more sign-ups for its ad-supported option priced at $6.99 (£4.99) per month.