Q1 2023, Netflix added 1.75 million new subscribers. Ad-Supported Tier Following Crackdown on Password Sharing

The streaming industry, whose growth has slowed as competition has risen, looks to Netflix as a leading indicator.

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While offering a forecast for the following three months that was below analyst expectations, Netflix on Tuesday reported first-quarter revenue and earnings that were roughly in line with Wall Street expectations.A crackdown on password sharing and the launch of an ad-supported tier started to pay off for the pioneer of streaming video.

In comparison to Wall Street’s forecast of $2.86 (roughly Rs. 234), Netflix’s diluted earnings from January through March came in at $2.88 (roughly Rs. 236) per share. The business reported earnings of $8.162 billion, or roughly Rs. 670 crore, in line with Refinitiv analyst projections.

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Netflix projected revenue of $8.242 billion (roughly Rs. 676 crore) and diluted EPS of $2.86 (roughly Rs. 236) for the second quarter. Wall Street had estimated revenue of $8.476 billion (roughly Rs. 696 crore) and diluted earnings per share of $3.05 (about Rs. 250).

The streaming industry, whose growth has slowed as competition has risen, looks to Netflix as a leading indicator.

In the quarter, the company added 1.75 million subscribers, falling short of analyst expectations of 2.06 million additions.For the first time in more than a decade, Netfliix lost 200,000 subscribers a year ago, sending its stock tumbling and upending Wall Street’s expectations for the industry.

According to Jefferies, non-English programmes like the third season of the Mexican drama “La Reina del Sur” and the Korean revenge drama “The Glory” did well during the March quarter despite the lack of major releases.

Amazon.com, Warner Bros. Discovery, and Walt Disney have all posed a serious threat to Netflix. According to consulting company Parks Associate, Amazon dethroned Netflix as the top streaming service in the United States last year.

After years of avoiding commercials, Netflix launched a streaming plan with advertising in 12 countries in November for $6.99 (roughly Rs. 574) per month. Ad-supported options are already available on Disney’s Hulu and Disney+, as well as HBO Max.