NETFLIX ADDS 9.33 MILLION SUBSCRIBERS AFTER BANNING PASSWORD SHARING
Netflix added a staggering 9.33 million new subscribers to its platform in the first quarter of 2024, marking a significant surge in its global user base. This growth comes in the wake of the streaming giant's aggressive crackdown on password sharing, a move that has evidently boosted its subscriber acquisition efforts.
The streaming platform's latest triumph was announced in its Thursday report, surpassing market expectations and nearly doubling analysts' estimates. Netflix's global subscriber count now stands at 269.6 million as of March's conclusion, fueled by a robust influx of new customers from all over the world.
"With more than two people per household on average, we have an audience of over half a billion people," the company said in its letter to investors. "No entertainment company has ever programmed at this scale and with this ambition before," it added.
Key to this resounding success has been Netflix's resolute stance on addressing unauthorised account usage, with an estimated 100 million individuals previously using someone else' accounts for free instead of directly subscribing to Netflix. Despite initial doubts about potential customer backlash, Netflix's efforts to encourage these "moochers" to transition into paying subscribers have proven effective. Reuters reported that Netflix executives have urged investors to focus on the company's revenue and operating margins instead on subscriber additions.Â
Moreover, Netflix's recent foray into ad-supported streaming plans has played a big role in expanding its reach and attracting a broader audience base. The introduction of a more affordable, advertising-supported tier caters to cost-conscious consumers, further diversifying Netflix's offerings and cementing its status as a global entertainment powerhouse.
Looking ahead, Netflix has promised to remain steadfast in its pursuit of innovative content strategies, including investments in live programming such as stand-up specials, wrestling, and upcoming boxing matches. Additionally, the company has announced its decision to cease reporting quarterly paid membership and revenue per subscriber, signaling a strategic shift towards more traditional performance metrics.