It was predicted that with the introduction of a new, cheaper package with advertisements and a severe limitation of sharing one account to only residents of one household, it would gain two million new users. Meanwhile, the total number of subscribers has grown to 238 million people worldwide.
The ban on account sharing will work. Netflix with growth
In the last three months, Netflix gained 5.9 million new users. This is almost three times more than analysts estimated when it was announced that the times when the password to the account could be carelessly shared with extended family or friends were over.
The campaign had the most expected results. Netflix also reported that its share price has increased. Wall Street experts had forecast earnings of $2.86, while earnings per share in the past period was $3.29. The profits of the platform with the influence of 8.3 billion amounted to 1.8 billion.
Nevertheless, the ongoing simultaneous strike of screenwriters and actors in Hollywood (the first such situation in 60 years), who are fighting, among others, for fair wages and fair regulation of the use of artificial intelligence in the film industry will inevitably have an impact on financial results in the coming months. Screenwriters do not write new films and series episodes and do not promote them, while actors left the film plans and also resigned from promoting finished productions.
Work on such projects as the second season of “Dragon House” and “The Forest of Us” from HBO, “Gladiator 2” by Ridley Scott or the second part of “Mission: Impossible – Dead Reckoning” has been suspended. Analysts from Deutsche Bank believe that Netflix, however, is better protected against the effects of the strike in the film industry, because in addition to having users all over the world, it also has an established system for producing new local content that has the potential to become global hits. This is well illustrated by examples of such series as the Spanish “Paper House” or the Korean “Squid Game”.
Source: Gazeta
Bruce is a talented author and journalist with a passion for entertainment . He currently works as a writer at the 247 News Agency, where he has established himself as a respected voice in the industry.
