Netflix adds 2.6 mn more subscribers in July despite password-sharing crackdown

SAN FRANSCISCO: Despite the password-sharing crackdown, streaming giant Netflix's subscriber base continues to grow as it added 2.6 million more paid users in the month of July in the US.

According to market research firm Antenna, Netflix commanded 2.6 million gross additions in July, which is overall elevated compared to normal.

However, this is still less than the spike in subscribers Netflix witnessed in June, but comes as yet another sign that Netflix’s paid-sharing rollout is actually working.

The company saw a dip of over 25 per cent from its record-breaking June.

Moreover, the report said that nearly 23 per cent of Netflix sign-ups went to its ad-supported plan, up 4 points compared to June 2023, and the largest share of sign-ups since that plan's launch in November.

The company launched paid sharing in more than 100 countries in May, representing more than 80 per cent of its revenue base.

Meanwhile, Netflix said that it added 5.9 million subscribers globally in the second quarter (Q2), with the US and Canada making up 1.17 million new members in the April-June period.

"Revenue in each region is now higher than pre-launch, with sign-ups already exceeding cancellations. Paid net additions were 5.9 million in Q2," Netflix said in a statement, adding that its password-sharing crackdown is working.

The revenue was $8.2 billion (3 per cent increase year-on-year) and operating profit was $1.8 billion in the second quarter.

For Q3, the company forecasts revenue of $8.5 billion, up 7 per cent year over year.