Netflix added 1.5 million new subscribers in the first quarter of 2023, beating analyst expectations. The company’s stock price rose more than 7% in after-hours trading.
The results were a welcome relief for Netflix, which has been facing increasing competition from streaming rivals like Disney+, HBO Max, and Amazon Prime Video. The company’s subscriber growth has been slowing in recent quarters, and it lost 200,000 subscribers in the fourth quarter of 2022.
Netflix attributed its strong first-quarter results to a number of factors, including the release of popular new shows like “Ozark” and “Stranger Things.” The company also said that it had made progress in cracking down on password sharing, which it estimates costs it $10 billion per year.
Netflix is testing a new policy in some countries that will require users to pay an additional fee if they want to share their password with someone who lives outside of their household. The company has said that it plans to roll out this policy to more countries in the future.
The password sharing crackdown is one of a number of initiatives that Netflix is taking to boost its revenue growth. The company is also raising prices and investing in new original content.
Netflix’s results are a sign that the streaming wars are far from over. The company is still the leader in the streaming market, but it faces increasing competition from rivals that are spending billions of dollars on new content. Netflix will need to continue to innovate and invest in order to maintain its lead.