Netflix increased its revenue, profit, and number of paying subscribers, according to the company’s latest quarterly report. All the numbers are higher than the forecasts, beating all expectations by analysts.
The streaming platform began with “paid sharing” (the official name of the crackdown on account sharing) in the United States and brought 5.8 million new paying subscribers. Netflix confirmed it is planning to address the issue in “almost all of our remaining countries”.
The 15-page report revealed the cancel reaction was low among users who suddenly were locked out of their friends’ accounts. Netflix also ditched the Basic plan in the US, which was the cheapest ad-free solution that costs $9.99 in the US (£9.99 in the UK, €9.99 in the EU). Instead, new and returning users should head to the $6.99 Standard with Ads, $15.49 Standard or $19.99 Premium. Basic is now available only to users who are still on the plan but will lose the chance to keep it once they eventually transfer to another one.
The company was also pretty transparent that it is not relying on ads for revenue, at least not for now. It is still developing the ads business and is working with Nielsen and EDO to improve measurement and innovate for advertisers to make its ad service more welcoming to companies willing to invest in the new solution.
