Netflix profits increase by 54 pct after it banned password sharing- All details you need to know | Tech News

Netflix profits increase by 54 pct after it banned password sharing- All details you need to know

Netflix's recent crackdown on password-sharing has led to a remarkable 54 pct surge in operating income and added 9.3 million new subscribers in the first quarter.

By: HT TECH
| Updated on: Apr 22 2024, 15:49 IST
 Netflix profits increase by 54 pct after it banned password sharing- All details you need to know
Netflix's crackdown on password-sharing results in a 54 pct increase in operating income and the addition of 9.3 million new subscribers. (REUTERS)

Netflix's recent crackdown on password-sharing has proven to be a strategic success, defying expectations and boosting the streaming giant's financial performance in the first quarter of the year.

Impressive Financial Growth

Contrary to concerns that the crackdown might lead to revenue and profit losses, Netflix reported a remarkable 54 pct increase in operating income. This surge comes alongside the addition of 9.3 million new subscribers globally, bringing the total subscriber count to 269 million—a 16 pct increase from the previous year, reported firstpost.

You may be interested in

MobilesTablets Laptops
7% OFF
Apple iPhone 15 Pro Max
  • Black Titanium
  • 8 GB RAM
  • 256 GB Storage
4% OFF
Samsung Galaxy S24 Ultra
  • Titanium Black
  • 12 GB RAM
  • 256 GB Storage
8% OFF
Apple iPhone 15 Plus
  • Black
  • 6 GB RAM
  • 128 GB Storage
13% OFF
Xiaomi 14
  • Matte Black
  • 12 GB RAM
  • 512 GB Storage

Also read: iPhone password reset attacks: What is this new scam and how to stay safe

Also read
Looking for a smartphone? To check mobile finder click here.

Exceeding Expectations

The company's earnings per share stood at $5.28, surpassing Wall Street's predictions of $4.51. Netflix's operating income reached $2.6 billion, a significant rise from the $1.7 billion reported in the same period last year.

Shift in Disclosure Strategy

In a strategic move, Netflix announced its decision to stop disclosing subscriber numbers starting next year. This shift reflects the company's intention to focus on engagement metrics, such as subscriber activity and time spent on the platform, rather than subscriber count.

Also read: Deepfakes of Bollywood stars spark worries of AI meddling in India election

A Closer Look at the Numbers

Netflix's operating income jumped to $2.6 billion, demonstrating the effectiveness of its measures against password-sharing in driving revenue growth.

With the addition of 9.3 million new subscribers, Netflix's total subscriber count reached 269 million, underscoring the success of its strategies in attracting and retaining users.

Future Focus: Engagement Metrics and New Revenue Streams

By prioritising engagement metrics, Netflix aims to better understand subscriber behaviour and preferences, allowing the company to tailor its content and services to meet user needs.

Exploring New Revenue Streams

Netflix is also looking to explore new revenue opportunities, such as advertising, to diversify its income sources and continue its growth trajectory.

Netflix's password-sharing crackdown has proven to be a beneficial move, driving significant financial growth and subscriber expansion. The company's robust first-quarter performance highlights the resilience and adaptability of its business model.

By shifting its focus towards engagement metrics and exploring new revenue streams, Netflix aims to maintain its competitive edge in the evolving streaming market.

One more thing! We are now on WhatsApp Channels! Follow us there so you never miss any updates from the world of technology. ‎To follow the HT Tech channel on WhatsApp, click here to join now!

Catch all the Latest Tech News, Mobile News, Laptop News, Gaming news, Wearables News , How To News, also keep up with us on Whatsapp channel,Twitter, Facebook, Google News, and Instagram. For our latest videos, subscribe to our YouTube channel.

First Published Date: 22 Apr, 15:49 IST
Tags:
Trending:
NEXT ARTICLE BEGINS

Best Deals For You