Netflix has gained 9 million new subscribers since its crackdown on password sharing and recent price hikes on its lowest-paying tier.
The streaming giant saw its number of users grow by more than 10 percent to 247 million in the recently concluded third quarter.
In an earnings report on Wednesday, the streaming giant revealed that its ad-supported offering was gaining popularity, with membership growing by nearly 70 percent in the quarter.
The company reported a profit of $1.68 billion on revenue of $8.5 billion in the quarter, beating market expectations with its earnings results.
The growth comes as Netflix increased its lowest ad-free plan, which is not available to new members, from $9.99 to $11.99.
Netflix has gained 9 million new subscribers following a crackdown on password sharing between users in different households
The streaming giant, led by co-CEOs Greg Peters and Ted Sarandos (pictured), saw its number of users grow by more than 10 percent to 247 million in the recently concluded third quarter.
In an earnings report on Wednesday, Netflix announced that its ad-supported offering is gaining popularity, with membership growing by nearly 70 percent in the quarter. In the photo: cast from Netflix hit Stranger Things
Netflix’s crackdown on password sharing has rapidly added new subscribers.
It reported nearly 6 million new members last quarter — on top of 3 million before that — after the Silicon Valley giant expanded its ban on users sharing passwords with people outside their immediate family in May.
Netflix introduced this policy in an attempt to strengthen revenue after a difficult period.
“The past six months have been challenging for our industry, given the combined strikes of writers and actors across the US,” the company said in its quarterly shareholder letter.
“While we have reached an agreement with the WGA, negotiations with SAG-AFTRA are ongoing.
“We are doing everything we can to resolve the remaining issues as quickly as possible so everyone can get back to work making movies and TV shows that audiences will love.”
It has complained that more than 100 million households were sharing accounts.
To convert non-paying users, Netflix has introduced “borrower” or “shared” accounts, where subscribers can add additional viewers or transfer viewing profiles to new accounts for a higher price.
In a separate revenue bid, Netflix launched an ad-subsidized offering around the same time as the crackdown and later eliminated its cheapest ad-free plan that cost $10 a month in the US.
The company is now introducing price increases for consumers in the US, UK and France from Wednesday.
The basic plan in the US will increase from $9.99 to $11.99 and the premium plan is now $22.99, up from $19.99.
The company reported a profit of $1.68 billion on revenue of $8.5 billion in the quarter, beating market expectations with its earnings results.
It reported nearly 6 million new members last quarter – on top of 3 million before – after the Silicon Valley giant expanded its ban on users sharing passwords with people outside their immediate family in May. Pictured: a scene from Netflix hit The Crown
Netflix introduced its crackdown on passwords in an effort to shore up revenue after a rough patch. Pictured: cast from the award-winning series Orange is the new Black
Although the subscriptions with advertisements, which cost €6.99, and the standard subscription, which costs €15.49, remain unchanged.
In the UK and France, the ad and standard plans will remain the same, but the basic plan will increase to £7.99 and €10.99 and the premium plan will increase to £17.99 and €19.99.
‘While we largely suspended price increases as we rolled out paid sharing, our overall approach remains the same: a range of prices and plans to meet a wide range of needs, and as we offer more value to our members, we ask them and pay a little more,” Netflix said in its third-quarter shareholder letter.
Netflix, led by co-CEOs Ted Sarandos and Greg Peters, had a big third quarter as it introduced a crackdown on password sharing in new countries and launched expansions to its advertising tier.
Advertising salesman Peter Naylor announced on Tuesday that brands will be able to sponsor individual shows and offer sponsorship for live events.
Netflix expects revenue to rise to $8.7 billion in the coming quarter, but net profit to fall to $956 million.