Netflix adds millions of new subscribers despite password-sharing curbs

Netflix has reported a huge increase in its subscriber base, adding 5.9 million new subscribers in the last three months.

The number was nearly three times more than analysts had anticipated and comes after the company took measures to clamp down on password-sharing households.

The announcement comes amidst ongoing strikes by writers and actors in the entertainment industry, marking the first time both unions have engaged in a walkout since the 1960s.

Co-chief executive Ted Sarandos expressed his dissatisfaction with the strike, stating, "This strike is not the outcome that we wanted."

He further assured that the company is eager to reach an agreement as quickly as possible.

During the latest quarter, Netflix boasted profits of $1.8 billion (AED6.61 billion) with revenues amounting to $8.3 billion (AED 30.5 billion).

Analysts had originally expected the addition of around 2 million new households during this period.

However, the surge in new subscribers came as more people chose to pay for their own accounts instead of relying on free password-sharing practices.

Netflix's global subscriber count has now reached 238 million.

The industry-wide strike, primarily focused on pay issues and the use of artificial intelligence (AI), is predicted to have a profound impact on the entertainment landscape in the upcoming months.

As a result, the production of new seasons for popular streaming shows such as House of the Dragon and The Last of Us, along with movies like Gladiator 2 and Mission: Impossible – Dead Reckoning Part Two, is expected to be paused.

Despite the challenges posed by the strike, analysts argue that Netflix is in a better position compared to its traditional media counterparts to weather the storm.

Last year, the company experienced its first-ever decline in subscribers. However, it has since managed to regain subscribers, and its decision to crack down on password sharing at the beginning of the year has seemingly paid off.

Netflix disclosed that over 100 million households were previously engaged in password sharing. This has now been curtailed, resulting in a significant uptick in paid subscriptions.