Netflix’s most recent quarterly report shows that the company’s revenue, profit, and paying subscriber base have increased, exceeding analysts’ expectations across the board.
Netflix with ‘paid sharing’ policy
Netflix launched a “paid sharing” policy in the United States, a strategic move to reduce account sharing, and successfully added 5.8 million new paying subscribers. The company has stated that it plans to implement this strategy in “nearly all” of its other markets in the future.
- Price Increase
According to the 15-page report, the sudden lock-out of users from their friends’ accounts resulted in a minimal cancellation response.
Netflix discontinued its Basic plan in the United States, which was previously the most affordable ad-free option at $9.99 (also £9.99 in the United Kingdom and €9.99 in the European Union).
New and returning customers are instead directed to the $6.99 Standard with Ads, $15.49 Standard, or $19.99 Premium plans.
The Basic plan is still available to those who are currently enrolled in it, but it will no longer be an option once they switch to another plan.
Not Relying on Advertisements
Furthermore, Netflix stated unequivocally that its revenue is not dependent on advertisements, at least not at the moment.
The company is expanding its advertising business, working with Nielsen and EDO to improve metrics and drive innovation for advertisers.
This is intended to make its advertising service more appealing to businesses interested in investing in this new offering.
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