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Netflix Bounces Back From Decade's Biggest Subscriber Loss Last Year As growth at Netflix cooled last year, the company focused on creating a lower-priced subscription tier with advertising, according to the report

By Teena Jose

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Netflix on Tuesday said that its number of subscribers hit a record high of 232.5 million in the first quarter of the year and that its nascent ad-supported tier was faring well, according to an AFP report.

The streaming television giant reported a quarterly profit of $1.3 billion, in line with expectations, but reportedly said it had delayed a broad crackdown on sharing of account passwords "to improve the experience for members," and also expects to begin rolling out its options for paid password sharing this quarter instead.

In Q1 2022 Netflix had announced that it had lost a record net 200,000 subscribers which is said to be the biggest drop off in over a decade. While checking the reasons for this subscribers' bleed, the company had estimated that over 100 million additional households have access to the streaming service due to passwords being shared. This forced the company to come up with an effort to crack down on password sharing. In February 2023, Netflix released its new password sharing guidelines.

Although Netflix's ad-subsidized subscription tier is still in its early days, engagement is above initial expectations, and the company has seen "very little switching" from its standard and premium plans. As growth at Netflix cooled last year, the company focused on creating a lower-priced subscription tier with advertising. It also sought to encourage people who were watching for free with shared passwords to begin paying for the service without alienating subscribers, the report further stated.

According to Insider Intelligence, US adults are expected to spend more time this year watching digital video on platforms like Netflix, TikTok, and YouTube than traditional TV, and added that, Netflix and YouTube are "neck and neck" leaders when it comes to digital video audience attention.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
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