June 23, 2024

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Why Netflix delayed its password sharing campaign

Why Netflix delayed its password sharing campaign

New York (CNN) Netflix said on Tuesday it will move forward with rolling out the paid account sharing option broadly in the second quarter, after delaying it during the previous quarter.

Netflix is ​​starting to push back on sharing passwords in files Four additional countries earlier this year, but chose not to expand more widely after it “saw enough optimization opportunities” from early launches.

The late timing, announced in the company’s most recent earnings results, may have added to the company’s challenges in growing its subscriber base during the March quarter.

The company reported a net increase of 1.75 million global streaming subscribers, up nearly 5% from the same period a year earlier, but less than the more than 3 million Wall Street analysts expected.

Netflix said it saw a “cancellation reaction in every market when we announce the news” about the paid sharing option, but then noted “an increase in acquisition and revenue.” However, delaying the rollout, Netflix said, “Some of the expected membership growth and revenue benefits will decline in the third quarter rather than the second.”

Tuesday’s earnings report is the first for new co-CEOs Greg Peters and Ted Sarandos, after founder Reed Hastings. peace on the role and became CEO in January.

It was a crucial quarter for Netflix, as the company looks to grow a number of new revenue opportunities after a challenging performance last year. Including shedding 200,000 subscribers in the year-ago quarter, which led to a major sell-off. The company is also growing its new ad-supported subscription offering, which launched last year.

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“Our ad-level engagement is above our initial expectations, and as expected, we’ve seen very little shifting from our standard and premium plans,” the company said in its subscriber letter Tuesday.

Netflix reported revenue of about $8.2 billion for the quarter, up nearly 4% from the same period a year earlier and in line with analyst expectations. The company’s quarterly income fell 18% to $1.3 billion.

Netflix said it expects revenue to grow roughly 5% to $8.2 billion during the three months ended in June, but expects quarterly earnings to fall more than 19% from the same period a year earlier.

The report comes days after Netflix Loser What was supposed to be his second live show ever – Season 4’s “Love is Blind” – and he had to apologize to disappointed fans and tape the special for the live broadcast. Unlike its streaming competitors, Netflix has long been resistant to streaming due to its high costs. But, facing stiff competition, Netflix has begun experimenting with the format, which it seems to have yet to master.

Netflix also said Tuesday that it will Solemnly calm down The DVD rental service that made him a household name this fall.