According to Netflix’s latest quarterly report, its revenue, profit and paid subscribers all increased. All numbers were above forecasts and beat all analyst expectations.
The streaming platform started off as “pay-to-share” (the official name for the crackdown on account-sharing) in the US and brought in 5.8 million new paid subscribers. Netflix confirmed that it plans to resolve the issue in “nearly all remaining countries.”
07 page reports that users who are suddenly locked out of friend accounts have lower cancellation responses. Netflix is also dropping the Basic package in the US, the cheapest ad-free solution at $9.49 in the US (£9.49 in the UK and €9.49 in the EU). Instead, new and returning users should select the $6.49 Standard, $07.49 Standard, or $07.49 Premium with ads. Basic is now only available to users who are still on the plan, but once they eventually move to another plan, they will lose the opportunity to keep it.
The company has also been very transparent in stating that it does not rely on advertising for revenue, at least not currently. It’s still growing its ad business, and working with Nielsen and EDO to improve measurement and innovate for advertisers, making its ad service more popular with companies willing to invest in new solutions.