Netflix has unveiled its results of the second quarter of 2023 in which it has added 5.9 million subscribers to reach a total of 238.3 million. A fact that has led the co-executive director of Netflix Greg Peters to make a positive balance of the shared password control policy. “We are seeing that it is working”, she has affirmed after the monetization of shared passwords has been implemented in more than 100 countries, including the United States in May. In a next phase, password sharing restriction coming to Indonesia, Croatia, Kenya and India with the difference that there it will not be possible to add a user within the plan at a lower price, because a reduction in monthly rates has recently been applied in those places.
The new strategy has also had an impact on a economic improvement and the company has reached the objective that was marked for this section of the year and enters 8,200 million dollars. Still, the figure has disappointed analysts who had expected the company to reach 8.6 billion. “Now that we have extended the payment for the shared use of the platform, we have greater confidence in our financial prospects,” they have assured from the company in its letter to shareholders. AND they expect that from the second half of the year economic growth will accelerate “as monetization grows.” As for subscribers, the purpose is to maintain a similar growth of around 6 million.
The Netflix results were especially expected at a time of crisis of the streaming industry. While, on the one hand, studios and companies are looking for the formula for profitability, the scriptwriters first and then the interpreters have initiated two strikes that represent the largest general strike for 63 years. The groups demand an improvement in their conditions, especially after the emergence of new forms of television consumption with streaming platforms, in addition to the regularization of the use of Artificial Intelligence, among other requests.
However, in the letter to investors The strike is barely mentioned to say that due to the stoppages, “less spending on content” is expected. The company continues to trust its catalog since, As Sarandos said in April, the company has “a huge base of series and movies from around the world.”. The statements predate the scriptwriters’ strike and the interpreters’ strike was not even on the table, but the company’s co-director at that time predicted that they could withstand the strike better than other companies: “We can probably serve our users better than most.”
