In the second quarter, 5.9 million more people paid for Netflix.
Streaming giant Netflix reported that it gained 5.9 million new subscribers worldwide during the second quarter (Q2). Among these, 1.17 million new members were from the US and Canada between April and June. In May, the company introduced paid sharing in more than 100 countries, which contributed to over 80% of its revenue base. Netflix stated that revenue in each region had surpassed pre-launch levels, and the number of new sign-ups outweighed cancellations. This success was attributed to the crackdown on password-sharing, which had a positive impact
During Q2, Netflix generated $8.2 billion in revenue, marking a 3% year-on-year increase, and achieved an operating profit of $1.8 billion. The company anticipates further revenue growth in the second half of 2023, as they expect to see the full benefits of paid sharing and continued steady growth in their ad-supported plan. For Q3, they predicts revenue of $8.5 billion, a 7% year-over-year increase. They also estimate that Q3’s paid net additions will be similar to those of Q2.
To enhance monetization, it is actively pursuing initiatives such as paid sharing and advertising. They plan to address account sharing between households in most of their remaining markets. In some of these markets, Netflix is not offering an extra member option due to recent price cuts and relatively low penetration rates, which allows them ample room for growth without adding complexity.