All articles tagged with #password sharing crackdown
Netflix is set to release its first quarter earnings, and shareholders are keeping an eye on the stock market reaction, the financial impact of the ad-tier business, and the effectiveness of the crackdown on password sharing, with hopes of a significant increase in net additions.
Warner Bros. Discovery's Max streaming service will begin enforcing restrictions on password-sharing outside of households in 2024, following the lead of Netflix and Disney. This crackdown aims to boost financial performance, with the company targeting $1 billion in earnings by 2025. The move comes as part of efforts to transition to profitable growth, with plans to expand Max into European countries, launch an ad-supported plan in more markets, and explore partnerships like the Verizon Max-Netflix bundle.
Warner Bros. Discovery's Max platform is set to implement a password-sharing crackdown in 2024, following in the footsteps of Netflix and Disney. The move aims to boost profitability and comes as the company's direct-to-consumer unit, including HBO Max and Discovery+, saw significant revenue growth in 2023. With roughly 97.7 million subscribers worldwide, the company is looking to replicate the success seen by Netflix after it introduced similar restrictions and an ad-supported plan.
Netflix has reported strong subscriber gains, surpassing analyst projections, as its crackdown on password sharing converts freeloaders into paying customers. To further increase revenue, Netflix is raising the price of its premium streaming service by $2 to $23 per month in the U.S., as well as increasing prices for subscribers in the U.K. and France. The company added nearly 8.8 million worldwide subscribers in the July-September period, bringing its total to about 247 million. Netflix's financial performance exceeded expectations, with earnings of $1.68 billion and revenue of $8.54 billion. The stock price rose over 12% in extended trading. The success of the password-sharing crackdown may allow Netflix to focus on other revenue-generating options, such as its low-priced ad-supported plan.
Netflix has added nearly 6 million paid subscribers despite its recent crackdown on password sharing. The streaming service continues to attract new users, with its strong content lineup and original shows.
Netflix reported mixed second-quarter earnings, with revenue slightly missing estimates despite new initiatives such as a crackdown on password sharing and the launch of an ad-supported tier. The company's profitability metrics, including operating margin and free cash flow, exceeded expectations. However, Netflix's third-quarter revenue guidance fell below expectations, leading to a dip in its stock price. The company also quietly removed its lowest-priced ad-free streaming plan in the US and plans to roll out paid sharing to more countries. Netflix is considered well-positioned amid the ongoing Hollywood strikes, according to a report by Moody's.
Netflix is set to release its second-quarter earnings report, which will provide insights into its subscriber momentum, progress on its cheaper advertising tier, and the impact of its password-sharing crackdown. Analysts have raised their price targets on Netflix, expecting positive updates on the company's monetization efforts and advertising tier rollout. Wall Street is bullish on Netflix shares, which have gained over 50% year-to-date. Analysts forecast net subscriber growth of 2.37 million in Q2 and anticipate revenue re-acceleration in the second half of 2023. However, some caution that high subscriber expectations may limit the opportunity for upside surprises.
Netflix has introduced a new Profile Transfer feature that allows users affected by the platform's recent password-sharing crackdown to transfer their profiles to an existing account instead of creating a new one. This feature is especially beneficial for those who were removed from their friend's account due to the password-sharing restrictions. Users can transfer their personalized recommendations, viewing history, watchlist, saved games, and other settings to any Netflix account by selecting the "Transfer Profile" option in the dropdown menu on the homepage.
Netflix missed on subscriber growth and earnings forecast, causing a 10% drop in after-hours trading, but recovered after disclosing the success of its ad-supported service and plans to crackdown on password sharing in the US. The company also announced the end of its DVD-by-mail business. Netflix executives called the first quarter "business as usual" as they transition from hyper subscriber growth to greater profitability. The company's focus is now on better monetization with an ad-supported service and a rolling crackdown on shared accounts.
Netflix missed subscriber growth forecasts for Q1, reporting 1.75 million net additions versus the expected 2.3 million. However, the company beat analyst expectations on earnings per share. Netflix also revealed plans for a broad rollout of its password-sharing crackdown, which will include the U.S. in Q2. The company also provided updates on its ad-supported tier, reporting above-expectation engagement and announcing plans to upgrade the ads experience with more streams and improved video quality.