Netflix: Revenue surges following ban on password sharing

According to Netflix, a crackdown on password sharing is one of the reasons why its profits increased dramatically in the first three months of this year.

Netflix: Revenue surges following ban on password sharing
Netflix: Revenue surges following ban on password sharing
The massive streaming service reported 9.3 million new users in the first quarter, raising its total to around 270 million.Additionally, the business said that its first-quarter profits increased to about $2.3 billion (£1.85 billion).

However, starting next year, the company will no longer provide important subscriber figures.

In a statement to shareholders announcing the decision, the company stated: “In our early days, when we had little revenue or profit, membership growth was a strong indicator of our future potential.”.

It further stated that the number of subscribers is now “just one component of our growth” and urged investors to concentrate on the company’s earnings and sales.

First-quarter revenue increased by over 15% on a yearly basis to $9.37 billion.A “drumbeat” of hits, including the crime drama Griselda, was also attributed to the company.

The company’s abrupt move to stop disclosing subscriber counts alarmed several investors, who believed that the company’s rapid customer growth may be coming to an end.

Although the data showed a “very, very strong performance,” Simon Gallagher, a former Netflix director and current principal of the entertainment investment business SPG Global, warned that this might not last on the BBC’s Today program.

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