Netflix gained nearly 6 million subscribers following its crackdown on password sharing.
The streaming service now has a total of 238 million subscribers and recorded a profit of $1.5 billion in the last quarter.
However, revenue came in lower than expected at $8.2 billion, leading to a more than 5 percent drop in the company’s shares in after-hours trading. Netflix is better positioned than its rivals to handle the ongoing writers and actors strike in the US entertainment industry.
The company’s crackdown on password sharing is considered successful, and it plans to expand the policy to all its markets worldwide. To convert non-paying users, Netflix introduced “borrower” or “shared” accounts, allowing subscribers to add extra viewers for a higher price or transfer viewing profiles to new accounts.
Netflix eliminated its lowest priced ad-free plan and is focusing on developing advertising as a significant revenue stream.
The ongoing actors and writers strike in the US has raised concerns about content availability, but Netflix believes it has a robust slate of releases and upcoming films and shows to endure the strike.
