Netflix added 5.9m new paid subscribers in the second quarter of this year after it cracked down on password sharing between households.
The uptick in subscriber numbers was significantly higher than analysts had been expecting.
In its Q2 shareholder report, Netflix said that “the cancel reaction was low” following the password crackdown and “while we’re still in the early stages of monetisation, we’re seeing healthy conversion of borrower households into full paying Netflix memberships as well as the uptake of our extra member feature.”
The company published a revenue of $8.2bn and operating profit of $1.8bn in Q2 and says it expects “revenue growth to accelerate in the second half of ‘23 as we start to
see the full benefits of paid sharing plus continued steady growth in our ad-supported plan.”
Netflix said that after launching paid sharing “we have increased confidence in our financial outlook. We expect revenue growth will accelerate in the second half of 2023 as monetisation grows from our most recent paid sharing launch and we expand our initiative across nearly all remaining countries plus the continued steady growth in our ad-supported plan.”
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