STREAMING: As a result, the California group Netflix made $1.5 billion in net profit from April to June
The twist on password sharing has paid off. Netflix now has more than 238 million subscribers, with 5.89 million added in the second quarter, an unexpected jump for the streaming platform. The Californian group, which is currently undergoing, like its competitors, a major strike by actors and screenwriters in the United States, made $ 1.5 billion in net profit from April to June, according to its results press release published on Wednesday.
Netflix has since May forced users in more than 100 countries to pay to add profiles to their account, instead of sharing their credentials for free, as many did before. “Revenue in each region is now higher than before the change, with already more subscriptions than cancellations,” the company said.
The cheapest subscription formula in siding
It will therefore immediately extend its policy of sharing paid user accounts to almost all countries where the service is present. To raise the bar after a difficult 2022, Netflix wants to generate more revenue from each user. The cheapest subscription formula without advertising thus disappeared on Wednesday in the United States and the United Kingdom. “If you are currently subscribed to the Basic offer, you can keep it until you change your formula or cancel your subscription”, specifies a message to users.
Spectators in these two countries, like those in Canada, now have the choice between a formula with advertising (at 7 dollars per month in the United States) and two more expensive subscriptions, without ads (15.5 and 20 dollars). And they have to pay 8 dollars more per additional user every month.
“Netflix will increase the pressure on password sharing and ad revenue growth,” commented Ross Benes of Insider Intelligence. ” It is not a coincidence. As the service’s user base stagnates in a growing number of countries, the group is looking to switch ‘parasitic’ users to its formula with ads”. This research firm estimates that Netflix will generate $770 million in advertising revenue in the United States this year, and more than a billion in 2024.