Netflix has increased revenue, profits and the number of paying subscribers, according to the company’s latest quarterly report. All numbers are higher than forecasts, beating all analyst expectations.
The streaming platform started with “paid sharing” (the official name for the crackdown on account sharing) in the US and brought in 5.8 million new paying subscribers. Netflix has confirmed it intends to address the issue in “nearly all of our remaining countries.”
The 15-page report revealed that the unsubscribe reaction was low among users who were suddenly blocked from their friends’ accounts. Netflix also ditched the Basic plan in the US, which used to be the cheapest ad-free option costing $9.99 in the US (£9.99 in the UK, €9.99 in the EU). Instead, new and returning users should go for the $6.99 Standard with Ads, $15.49 Standard, or $19.99 Premium. Basic is now only available to users who are still on the plan but will lose the ability to keep it once they move to another plan.
The company has also been fairly transparent that it doesn’t rely on ads for revenue, at least not for now. It is still growing the ad business and is working with Nielsen and EDO to improve measurement and innovate for advertisers to make its advertising service more welcoming to companies willing to invest in the new solution.
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