According to the latest quarterly report, Netflix has significantly increased its revenue, profit and the number of its paying subscribers. All figures are above the forecasts and exceed all analysts’ expectations. The reason lies primarily in the start of “paid sharing”. This is the official name of the streaming platform for action against account sharing. In the US, the measure now played a large part in Netflix being able to announce 5.8 million new paying subscribers today. Accordingly, the company also directly confirmed that it plans to address the issue in “almost all of our remaining countries.”
The 15-page report found that abandonment response was low among users who were suddenly banned from their friends’ accounts. Netflix also canceled the Basic plan in the US, which was the cheapest ad-free solution, costing $9.99 in the US (£9.99 in the UK, €9.99 in the EU). Instead, new and returning users should choose the standard plan with ads for $6.99, the standard plan for $15.49, or the premium plan for $19.99. The Basic subscription is therefore only available for users who are currently still on this plan. As soon as you switch to a different model, these users cannot go back to the Basic plan either.
Netflix also made it pretty clear that it doesn’t rely on advertising for revenue, at least not right now. The company continues to evolve the advertising business, working with Nielsen and EDO to improve measurement and innovate for advertisers. This is intended to make the advertising service more attractive to companies willing to invest in the new solution. The streaming service also invests in games.
