In a recent Q2 2023 earnings interview for investors, Netflix announced the “success” of its paid account sharing initiative, now expanded to over 100 countries, accounting for more than 80 percent of its revenue. The crackdown, which started in the United States on May 23 and in several other countries in early February, aimed to address users sharing their Netflix passwords. Despite concerns, the company added 5.9 million subscribers in Q2, reaching a global total of 238.4 million, with only a limited number of cancellations resulting from the action.
“The cancel reaction was low and while we’re still in the early stages of monetization, we’re seeing healthy conversion of borrower households into full paying Netflix memberships as well as the uptake of our extra member feature,” Netflix said in its letter to investors.
As the initiative expands, Netflix will tackle account sharing in nearly all remaining countries where the streaming service is offered, including Indonesia, Croatia, Kenya, and India.
The success of the global launch of paid sharing and the introduction of the advertising tier has boosted Netflix’s financial outlook. The company anticipates accelerating revenue growth in the second half of 2023 and expressed optimism about developing advertising into a multi-billion dollar incremental revenue stream.
In an effort to drive adoption of its ad-based plans, Netflix removed its $10/month (£7) Basic Plan for new subscribers in the U.S. and U.K., leaving consumers with three options–Standard with ads ($7/month), Standard ($15.50/month), and Premium ($20/month).
Netflix executives initially postponed the stateside launch of the password-sharing crackdown to gather insights from other markets earlier. The paid membership base grew larger in Canada after the launch, leading to increased revenue and membership growth.
The products discussed here were independently chosen by our editors.
GameSpot may get a share of the revenue if you buy anything featured on our site.
