![]() ![]() Netflix's decision to open its service up to commercials hasn't been a big boon yet. The apparent success of the password-sharing crackdown could now free management to focus on other ways to bring in more revenue, such as a low-priced option that includes advertising introduced a year ago. He predicted more subscriber gains will accrue from the crackdown for at least several more quarters as Netflix confronts more "borrower households" about watching the service's programming without paying for it. "We are incredibly pleased with how it has been going," Netflix co-CEO Greg Peters said when asked about the password-sharing crackdown during a Wednesday video conference call. The crackdown also has boosted Netflix's in another way – current subscribers can share their accounts with someone living outside their households by paying higher monthly fees. Netflix's decision to abandon its long-established practice of allowing subscribers to share their account passwords with friends and family outside their households has prompted more viewers who had been watching the video service for free to sign up for their own accounts. But it's still a fraction of the more than 36 million additional subscribers that Netflix attracted in 2020 when the pandemic turned into a gold mine for the service at a time when people were looking for ways to stay entertained while tethered to home. Netflix has picked up more than 16 million subscribers through the first nine months of the year, already eclipsing the 8.9 million subscribers that it added all of last year. Netflix shares have increased by about 30% so far this year amid mounting evidence its video streaming service is faring better than most in a crowded fielded of competitors that is testing the financial limits of many households. The company's stock price soared more than 12% in extended trading after the latest quarterly numbers came out. The Los Gatos, California, company earned $1.68 billion, or $3.73 per share, a 20% increase from the same time last year while revenue climbed 8% to $8.54 billion. Netflix's financial performance also topped the analyst forecasts that shape investor expectations. The increase left Netflix with about 247 million worldwide subscribers, well above the 243.8 million projected by analysts surveyed by FactSet Research. The company added nearly 8.8 million worldwide subscribers during the July-September period, more than tripling the number gained during the same time last year when Netflix was scrambling to recover from a downturn in customers during the first half last year. Culture Netflix plans to open brick and mortar locations ![]()
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