The latest quarterly report from Netflix reveals that the company has seen a rise in its revenue, profit, and paying subscriber base, exceeding analysts’ predictions across the board.
Netflix initiated a “paid sharing” policy – a strategic move to curb account sharing – in the United States, successfully adding 5.8 million new paying subscribers. The company has affirmed its intentions to implement this approach in “nearly all” of its other markets in the future.
The report, spanning 15 pages, indicated that the sudden lock-out of users from their friends’ accounts resulted in a minimal cancellation response. Netflix phased out its Basic plan in the US, previously the most affordable ad-free option at $9.99 (also £9.99 in the UK and €9.99 in the EU).
In its stead, new and returning customers are directed towards the $6.99 Standard with Ads, $15.49 Standard, or $19.99 Premium plans. The Basic plan remains only for those currently enrolled in it but will no longer be an option once they switch to a different plan.
Furthermore, Netflix made it clear that its revenue doesn’t hinge on ads, at least not at present. The company is in the process of expanding its advertisement business, collaborating with Nielsen and EDO to enhance metrics and drive innovation for advertisers. This aims to make its advertisement service more attractive to businesses interested in investing in this emerging offering.
Source: gsmarena