When Netflix announced their plans to crack down on password sharing, many users threatened to cancel.
Industry analysts issued dire warnings. A survey by MoffettNathanson warned that the crackdown could cause irreparable harm to Netflix's brand. But the worst … didn't happen.
It seems that restrictions on sharing have been a boon for Netflix. Through the first quarter, Netflix added about 9 million subscribers — many who previously used someone else's account and password.
Now, Netflix has nearly 270 million subscribers, a record high for the company. Revenues weighed in at $9.7 billion for the quarter and net income surged from $1.3 billion to $2.3 billion. International markets have also performed well, with growth hitting 17 percent in the Europe, Middle East, and Africa regions. The Asia-Pacific region grew by 10 percent while Latin America expanded by 9 percent. This comes even as many competing platforms, like Disney Plus, continue to bleed cash. Statista reports that Disney Plus had fewer than 150 million subscribers as of the first quarter of 2024.
But Netflix isn't resting on its laurels, and is instead focusing on new types of content in an effort to attract an even broader audience. The platform has begun to air some live events, including comedy shows, sports, and concerts. Users can also play streaming games on Netflix as well. That said, Netflix and other streamers continue to face headwinds. So-called "savvy streamers" are keeping costs low by signing up for one streaming service and binging on it for a few months before canceling and signing up for a different platform. Instead of attracting annual subscribers, some platforms may find that they only get paid for a few months a year.