It seems that Netflix‘s recent moves are yielding good fruits as the company reports a surge in subscribers during the second quarter of 2023. The streaming company added nearly 6 million paying subscribers, an impressive 8 percent increase, validating the effectiveness of its push to stop users from sharing accounts beyond their households.
For context, Netflix banned account sharing between people to boost its own revenue.
Netflix “Paid Sharing” Option Now Available In Over 100 Countries
Contrary to concerns at the time of this decision’s execution, the crackdown on password sharing has not resulted in mass cancellations. Instead, it has inspired more people to sign up for their own accounts.
According to the company’s letter to shareholders, there has been a healthy conversion of borrowers into full-paying Netflix members, along with an uptake of the new “extra member” feature.
In addition to restricting account sharing, Netflix has introduced a “paid sharing” option, allowing subscribers to pay $8 per month to add an “extra member” to their account. This feature is now available in over 100 countries, showcasing Netflix’s commitment to enhancing user experience globally. The company has also streamlined its subscription plans, recently discontinuing its $10 “basic” plan in the United States and the UK after its removal in Canada.
Looking ahead, Netflix plans to extend its password-sharing restrictions to the remaining countries where they are not yet enforced, such as India, Indonesia, Kenya, and Croatia. Instead of offering the “extra member” option in these regions, users will be able to transfer their profiles to fresh accounts.
During the company’s live-streamed interview discussing its results, co-CEO Ted Sarandos addressed the ongoing strikes among Hollywood’s actors and writers. He stated that Netflix is committed to finding an equitable solution, even though they have lowered their cash expenditure estimates by $1.5 billion due to the impact of the strikes.
The introduction of “paid sharing” and the streamlining of subscription plans have further strengthened the company’s position as the leading global streaming platform. With ongoing measures to restrict password sharing in additional countries, Netflix continues to adapt to industry challenges while maintaining its focus on delivering exceptional content and user experience.