Following the wake of the crackdown on password-sharing, Netflix, the streaming giant has announced that it added nearly 6 million new subscribers during the three months ending in June, bringing its total subscribers to more than 238 million globally.
The pickup in subscribers came as the potentially crippling writers and actors strike hits the US entertainment industry, but analysts say Netflix is better positioned than its rivals to weather the storm.
Speaking during the earnings presentation, Ted Sarandos, Co-Chief Executive of Netflix said, “We are constantly at the table negotiating with everyone across the industry. We need to get this strike to a conclusion so that we can all move forward.”
Revenue came in lower than expectations with Netflix posting $8.2 billion in sales over the April to June period, pushing the company’s shares down more than 8 per cent in afterhours trading on Wall Street.
Netflix in May expanded its crackdown on users sharing passwords with people beyond their immediate family as it seeks to shore up revenue after a rough patch last year.
Earlier this year, the company complained that more than 100 million households were sharing accounts at the service.
Commenting on the result, Louis Navellier, Chief Investment Officer at Navellier and Associates said “Let’s face it, the crackdown on passwords is working. I was ecstatic with the results; I think they hit the ball out of the park with subscriber growth.”
In its earning statement, the company said that the policy would expand to all its markets worldwide.