Netflix has reported a significant surge in profits during the initial quarter of this year, crediting part of the increase to efforts aimed at curbing password sharing.
With an addition of 9.3 million customers within this period, Netflix’s subscriber base now nears the 270 million mark.
The streaming platform revealed a profit exceeding $2.3 billion (£1.85 billion) for the first quarter. However, starting next year, Netflix will discontinue the practice of disclosing subscriber figures.
Warner Bros. Discovery’s Max, Disney+, Hulu will join Netflix in cracking down on password sharing.
The firm emphasised in a letter to shareholders that while membership growth was crucial in its early stages, it now urges investors to prioritise its profits and revenue. Revenue for the first quarter surged by almost 15% year-on-year to $9.37 million
Netflix’s unexpected move to halt reporting subscriber numbers sparked concerns among investors, with some interpreting it as a potential indication of a slowdown in customer growth.
Jamie Lumley from Third Bridge remarked that the decision raises doubts about Netflix’s subscriber base expansion.
This shift mirrors actions by other tech giants like Meta and X (formerly Twitter), which ceased reporting monthly active user numbers amid slowing growth. Following the announcement, Netflix shares dipped nearly 5 per cent.
