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As he reported 24 ChannelsThis significant growth is attributed to Netflix’s aggressive efforts to combat unauthorized account sharing. In May, the company began alerting subscribers about its new
As he reported 24 ChannelsThis significant growth is attributed to Netflix’s aggressive efforts to combat unauthorized account sharing. In May, the company began alerting subscribers about its new policy aimed at preventing multiple users from sharing a single account.
Account sharing within the same household will continue to be allowed, while account sharing with people living elsewhere will incur additional charges. However, this option is not available on the cheapest Netflix plans.
Tightening the policy has paid off for the company as its subscriber base grows, according to a report from analyst firm Antenna. The company’s CEO, Greg Peters, acknowledged that the full impact of the policy may not be seen immediately, as it may take some time for some shared account users to register their own accounts.
Still, Netflix is optimistic about the long-term effects of the policy, especially considering that those who eventually switch to their own accounts will exhibit features similar to those of regular customers, suggesting a high retention rate for new subscribers.
In the second quarter, Netflix reported revenue of $8.19 billion, up 3% year-over-year. The company’s net income also increased by $50 million from the previous year to $1.49 billion. Despite these positive financial indicators, Netflix shares tumbled 8% after the stock market’s main trading session.
Looking ahead, Netflix forecasts 7% more revenue growth in the third quarter compared to the same period last year, with expected revenue of $8.5 billion. The company attributes this growth to an increase in the average number of paid subscriptions. In addition, Netflix expects growth in paid subscribers in the third quarter to be similar to the growth in the second quarter.
In the fourth quarter, the company anticipates even more significant revenue growth as efforts to limit the use of shared passwords gain momentum. In addition, the increase in advertising revenues is expected to strengthen the positive dynamics in revenues.
Continuing to focus on limiting account sharing and strengthening its subscriber base, Netflix remains a key player in the competitive streaming market, poised to expand further in the coming months.
Source: 24 Tv
John Wilkes is a seasoned journalist and author at Div Bracket. He specializes in covering trending news across a wide range of topics, from politics to entertainment and everything in between.
