Netflix is taking a victory lap and defending its business strategies after an earnings report showed strong third-quarter earnings.
One of those strategies intended to continue its success is implementing its promised crackdown on account sharing.
“We’ve landed on a thoughtful approach to monetize account sharing and we’ll begin rolling this out more broadly starting in early 2023,” Netflix said in its quarterly earnings report.
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Netflix said it will “offer the ability for sharers to manage their devices more easily and to create sub-accounts, if they want to pay for family or friends.”
The plan is designed to curb previous dips in subscribers, reportedly costing Netflix more than $6 billion per year in lost revenue.
Netflix added more than 2 million subscribers after two consecutive quarterly declines, sending its shares more than 10% higher in after hours.$NFLX announced third-quarter earnings of $3.10 a share, down from $3.16 a share a year ago: https://t.co/s1tQDK2jPb pic.twitter.com/IIggwR7ugE
— MarketWatch (@MarketWatch) October 18, 2022
The streaming service also announced it avoided a third straight quarter of subscriber losses with the gaining of more than 2 million subscribers.
“Thank God we’re done with shrinking quarters!” Co-CEO Reed Hastings said during the earnings call. “So, that’s a big feeling of — we’re back to the positivity.”
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Netflix previously reported its shares had dropped nearly 70% in 2022 following a loss of 200,000 subscribers, its first subscriber decline since October 2011.
