Netflix garners 6mln subscribers following password sharing crackdown

Netflix has added six million paid subscribers in three months, following its paid password sharing, with a total of 238 million subscribers globally, Netflix announced on Wednesday.

Since its launch of paid sharing, Netflix’s revenue is higher than before the launch, with sing-ups exceeding cancellations, the streaming service said.

“The launch of paid sharing Netflix’s primary revenue accelerator in the year, 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,” said Netflix’s chief financial officer, Spencer Neumann.

The paid sharing, introduced in 100 countries, is Netflix’s attempt to get users to stop sharing accounts with others for free and to boost revenue, by restricting password sharing and introducing an ad supported subscription tier.

The streaming service’s paid password sharing has boosted revenue for the quarter, and is expecting to post revenue of $8.5 billion and a seven percent year-over-year increase.

Netflix also faces its new challenge; Hollywood actors and writers’ strikes, which will be impacting future production of shows and movies.

“It was not the outcome we wanted. The company produces heavily across all kinds of content,” said Netflix co-CEO, Ted Sarandos.

Netflix has been investing in unscripted and international content, which it is looking to face the strikes and their outcomes with.