Netflix gets 5 mn users in March qtr
Firm to invest around $17 bn this year on new content
California, April 17: Netflix’s plan to maintain subscriber growth after two quarters of blockbuster increases will be in focus when it reports earnings on Thursday, with some analysts warning that gains from a crackdown on password sharing are set to ease.
The streaming pioneer is expected to add 5 million subscribers in the first quarter ended March, according to LSEG data. While that is nearly three times the 1.8 million additions it saw in the same period last year, it would mark a slowdown from the bumper growth it witnessed in the last two quarters of 2023.
Netflix saw its strongest growth since the pandemic in the second half of 2023, with about 22 million people signing up for the service after the company curbed the sharing of passwords globally.
But the bump from the password-sharing crackdown is expected to slow this year, turning the spotlight on its other efforts, including an ad-supported tier and a growing focus on sports.
The company is expected to add 3.7 million subscribers
THE CRACKDOWN has hit a saturation point in the United State, even though it may have some room to run in international markets including India. in the second quarter ended June.
Implemented globally in May last year, the success of Netflix’s passwordsharing crackdown has prompted similar moves by streaming rivals such as Walt Disney and helped its share price rise by about a third in 2024.
But some analysts have said the crackdown has hit a saturation point in the United States, even though it may have some room to run in international markets including India.
“There will be some concerns of saturation in key core markets, given the initial growth from password sharing crackdown,” said Paolo Pescatore, analyst at PP Foresight.
Netflix has crossed 23 million monthly subscribers for its ad-supported tier and the plan accounts for 30 per cent of all new sign-ups in the 12 countries it is available, the company’s president of advertising had said.
Netflix said during an investor call last quarter it expects to invest as much as $17 billion this year on content in a “smart, judicious, responsible way”. — Reuters
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