Netflix added 5.9 million global subscribers, reaching 238.3 million, with password sharing pushing subscribers to the months-old $7-a-month plan with advertising. Earnings per share of $3.29 excee…
In reporting the financials, Netflix said it would be expanding its password sharing plan to virtually its entire global footprint after rolling it out in May to more than 100 countries
“Now that we’ve launched paid sharing broadly, we have increased confidence in our financial outlook,” the company said in its quarterly letter to shareholders. “We expect revenue growth will accelerate in the second half of 2023 as monetization grows.” Subscriber growth should be in the range of that in second quarter , the letter added.
Despite the stellar subscribers numbers and earnings beat, Netflix shares declined by about 4% in after-hours trading. They have run up 50% in just the past two months and have more than tripled since the dark days of early 2022, when consecutive subscriber slips and bleak executive comments shaved two-thirds of the company’s market value.
The results from the quarter ending June 30 reflect the second full quarter of operation for the $7-a-month advertising-supported subscription tier. The password sharing plan carries an $8 monthly charge in the U.S. for a practice that used to be allowed at no charge. Despite warnings from the company’s management team and many of those who track its movements of subscriber backlash, the attempt to derive revenue from something that the company used to allow for free appears to have gone relatively smoothly. Given the overall pricing scheme, the move has made the new ad-backed tier more attractive. (Hours before the earnings release,
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