Netflix acquired 9.3 million new subscribers at the beginning of the year. Its growing advertising efforts also contributed to better-than-expected financial results.
The recent performance of Netflix indicates that it is continuing the momentum from last year. Measures to address password sharing and the introduction of a cheaper plan with ads have revitalized its growth after a lull following the pandemic.
Last year, Netflix gained 30 million subscribers, marking the second biggest annual increase in its history.
During January-March, Netflix added over 4 times the subscribers it did during the same period last year. The company ended March with nearly 270 million subscribers globally, including about 83 million in the U.S. and Canada.
Investors increasingly see Netflix as the leading player in the competitive streaming landscape, which includes Apple, Amazon, Walt Disney Co., and Warner Bros. Discovery.
However, Netflix surprised investors by announcing that it will stop providing quarterly updates on its subscribers from next year, making it harder to track its growth or decline. The company has been sharing its quarterly subscriber numbers since it went public 22 years ago.
Netflix’s stock fell over 3% in after-hours trading, despite its strong financial performance.
The renewed subscriber growth has been matched with a focus on increasing profit and revenue. This has led management to be more careful with its spending on original content and to raise subscription prices regularly.
This approach helped Netflix earn $2.33 billion, or $5.28 per share, in the latest quarter, a 79% jump from the same period last year. Revenue also increased by 15% from a year ago, reaching $9.37 billion. Analysts had projected earnings of $4.52 per share on revenue of $9.27 billion.
