Netflix's profit increases following crackdown on password sharing

Netflix, the American streaming service platform, has announced a significant surge in profits for the initial quarter of this year, crediting its crackdown on password sharing as a contributing factor.

During this period, the streaming behemoth welcomed 9.3 million fresh subscribers, pushing its total subscriber base to nearly 270 million.

The company's quarterly profits surpassed $2.3 billion (£1.85 billion).

However, commencing next year, Netflix will refrain from disclosing its primary subscriber figures, stressing that subscriber expansion is merely one facet of its holistic growth strategy.

Netflix encouraged investors to prioritize its earnings and revenue.

Revenue for the first quarter of Netflix escalated by approximately 15% in comparison to the preceding year, reaching $9.37 million.

The resolution to halt subscriber number disclosures prompted speculation among some investors regarding a potential slowdown in Netflix's customer base expansion.

Similarly, other tech giants such as Meta (formerly Facebook) and X (formerly Twitter) have ceased reporting monthly active user figures due to dwindling growth rates.

Following this announcement, Netflix shares experienced a nearly 5% decline.

In 2022, Netflix last adjusted the pricing of its "standard" plan, resulting in a temporary subscriber decrease and concerns regarding its market dominance.

In response, Netflix enacted measures to combat password sharing and introduced a more affordable plan featuring advertisements.