Netflix’s password-sharing crackdown has had the impact it had hoped for, with the company announcing it has added 5.9 million global subscribers in the past quarter – reaching 238.3 million.
Total revenue came in at $8.2 billion as opposed to an expected $8.6 billion, but the company currently has a free cash flow of $1.34 billion compared to just $13 million at the same time last year.
In a letter to shareholders, the streamer says that the sharing crackdown has gone relatively smoothly and the “cancel reaction was low” meaning few opted to cancel in protest. In fact, revenue and subscription levels have increased across all regions.
The news follows in the wake of the company announcing it is eliminating its $10-a-month ‘Basic’ subscription tier in the U.S. and other territories to promote the cheaper ‘Basic With Ads’ plan.
Netflix adds it’s now expanding its password-sharing plan to virtually the entire remainder of its global footprint after rolling it out in May to over 100 countries (including the U.S.).
On a quarter earnings call, Netflix’s co-CEO Ted Sarandos says the streamer is far more interested in buying IP directly rather than any merger or acquisition talk. Sarandos also says one area Netflix has no interest in pursuing is live sports, save for occasional events that can boost ‘sports adjacent’ programming.
Source: Deadline
