Netflix gained almost 6 million subscribers in the 2nd quarter – 07/19/2023 – Market

The number of Netflix subscribers jumped 5.89 million accounts in the second quarter, totaling 238 million customers, the company said after the Wall Street shutdown on Wednesday (19).

The increase is explained by its policy of restricting the possibility of sharing passwords between users.

The American streaming platform made a net profit of US$ 1.5 billion (the equivalent of R$ 7.18 billion, at current prices) between April and June, a result that also exceeded market expectations.

Since May, Netflix has forced users from more than 100 countries to pay to add profiles to their accounts, instead of sharing their access for free.

“Earnings in each region are now higher than before the switch, with more subscriptions than unsubscribes,” the group said in its quarterly earnings release.

The pay-for-account sharing policy will immediately expand to virtually all countries where the service is available.

After a difficult 2022, Netflix is ​​looking to generate more revenue per user.

As a result, the cheapest ad-free subscription package disappeared this Wednesday (19) in the United States and the United Kingdom.

Customers in these two countries, as well as those in Canada, can now choose between the ad-supported option and two more expensive ad-free options. In addition, they will have to pay monthly for additional users.

Research firm Insider Intelligence estimates Netflix will generate $770 million (R$3.35 billion) in advertising revenue in the United States this year and more than $1 billion (R$4.79 billion) in 2024 .

Netflix posted sales of $8.2 billion (R$39.29 billion) in the second quarter, slightly less than analysts had expected.

Its shares fell more than 5% in electronic trading after the New York Stock Exchange closed.