Last Update: April 19, 2023, 02:52 AM IST
However, Netflix shares fell more than three percent in after-market trading as the streaming television giant reported a $1.3 billion profit in line with expectations. (file photo)
However, Netflix shares fell more than three percent in after-market trading
Netflix said Tuesday that its subscriber base hit a record high of 232.5 million in the first quarter of the year and that its nascent ad-supported tier is performing well.
The streaming television giant reported quarterly profit of $1.3 billion, in line with expectations but said it had been delayed by a wider crackdown on account password sharing “to improve the experience for members”.
Netflix said it expects to begin rolling out its options for paid password sharing this quarter.
This means that some of the membership and revenue benefits arising from the move were deferred, Netflix said in a letter to shareholders.
“We are confident this will result in better outcomes for both our members and our business,” Netflix said.
And while a new ad-subsidized subscription tier at Netflix is in its early days, engagement has been above initial expectations and Netflix has seen “very little switching from our standard and premium plans.”
Market tracker Insider Intelligence estimates that Netflix will bring in $770 million in new advertising revenue this year, and that revenue figure will reach $1 billion next year.
As growth cooled at Netflix last year, the Silicon Valley-based streaming company focused on building out low-cost subscription tiers with advertising.
Netflix poised to start paying for the service without alienating customers watching for free with shared passwords.
Insider Intelligence predicts that for the first time ever, US adults will spend more time watching digital videos on platforms such as Netflix, TikTok and YouTube than watching traditional television this year.
The market watcher expects “linear TV” to account for less than half of daily viewing for the first time, falling to under three hours, while average daily digital video viewing climbs to 52.3 percent, with 3 hours and 11 minutes. Is.
“This milestone is driven by people spending more and more time watching video on their biggest and smallest screens, whether it’s an immersive drama on a connected TV or smartphone,” Paul Verna, principal analyst at Insider Intelligence, said in a release. But the viral clip.”
According to Insider Intelligence, Netflix and YouTube are “neck and neck” leaders when it comes to digital video viewership attention.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)
