Netflix shared its subscriber and earnings growth for the second quarter of the year, attributing the increased numbers to the password-sharing crackdown, advertising, and original content.
The streaming giant reported an additional eight million subscribers within the April to June period, marking its 37% increase compared to the same time last year.
Netflix Continues Recovery From 2022 Decline
Netflix experienced a huge decrease in subscribers during the first half of 2022. The experience pushed the company to invest in other ventures and introduce a new strategy to get back.
The streaming giant revealed that the recent increase marked the company's sixth consecutive quarter wherein Netflix gained new subscribers. The company's revenue also moved in better terms after reaching a 17% increase from 2023 or $9.56 billion.
Despite its rising value, the management acknowledged the possibility of slower growth for the next quarter. Netflix predicted a 14% increase, a little lower than the 18% growth prediction from analysts.
Netflix Grows Ad-Supported Membership
The streaming giant has been working actively to terminate accounts that are suspected of password sharing. Other platforms like Disney+ have also implemented the same strategy to boost their subscriber count.
Netflix revealed that its ad-supported membership grew 34% in the recent quarter as compared to last year. The streaming giant has been pushing several tiers to its subscribers.
For instance, the cheaper and ad-supported tier is available for only $6.99 per month. Subscribers who intend to add more slots to their accounts are also encouraged to purchase one per member.
Netflix's global paid membership is now up to 278 million, a 16.5% year-over-year growth.
The company is set to stop its quarterly membership update once 2025 begins.
