The Password Crackdown Paid Off
Netflix announced it now has 320 million paying subscribers globally, a record high and up 22 million from the same quarter last year. The company credited two initiatives: its crackdown on password sharing — which at its peak was used by 100 million non-paying households — and the rapid growth of its ad-supported tier.
Ad-Supported Tier Growth
The cheaper, ad-supported plan now accounts for 40% of all new sign-ups in markets where it is available. Average revenue per user from the ad tier has grown to $7.80 per month, matching the economics of standard subscriptions thanks to premium ad rates.
"We were wrong to think password sharing was harmless. Fixing it was painful short-term, but the math has been decisively proven right," said Netflix's co-CEO on the earnings call.
Content Slate Ahead
Netflix announced returning seasons of three of its most-watched series and confirmed a $1 billion live-events deal that will bring exclusive sporting events to the platform starting next year.
