The restriction on password sharing by Netflix seems to be working.
The world’s largest streaming company claimed that during the three months ending in June, it added nearly 6 million paid members, pushing its total to over 238 million.
After starting its wide rollout earlier this year, the business said it has now introduced paid sharing—an attempt to persuade customers to cease sharing accounts with others for free—in more than 100 countries. According to Netflix, sales in certain regions are currently greater than they were before the start of the service, and “sign-ups are already exceeding cancellations.”
Spencer Neumann, Netflix’s chief financial officer, referred to the company’s introduction of paid sharing as their “primary revenue accelerator in the year” on the call to discuss the second quarter’s financial results.
“Most of our revenue growth this year is from growth in volume from new paid memberships and that’s largely driven by our paid sharing rollout,” he said.
The findings arrive at a crucial time for Netflix as the streaming service attempts to increase revenue by prohibiting password sharing and introducing an ad-supported subscription option while also coping with a new challenge: strikes by both the Hollywood actors’ and writers’ unions that could have an impact on its upcoming slate of original shows and films.
On the call on Wednesday, Ted Sarandos, co-CEO of Netflix, addressed the strikes and said it was “not the outcome we wanted.”
When questioned if the company would run out of original material if the actors’ and writers’ strike continues, Sarandos added that the firm produces “heavily across all kinds of content,” citing Netflix’s investments in unscripted and foreign production, among others.
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