Netflix exceeds expectations: 9.3 million new subscribers in the first quarter

Netflix exceeds expectations: 9.3 million new subscribers in the first quarter

Netflix significantly exceeded analysts' expectations in the first quarter of this year by adding more than 9.3 million new subscribers. This number is more than double the average number predicted by analysts. Despite this impressive performance, Netflix shares initially lost over three percent of their value in after-hours trading. A possible reason for this could be the slightly weaker than expected sales forecast for the next quarter.

The aggressive crackdown on password sharing has helped Netflix post rapid subscriber growth over the last two quarters. A new strategy from the company requires customers who share the account outside the household to pay an additional fee. Despite concerns that this move could scare away many customers, the growing number of users suggests that this move has been positive for Netflix.

Another factor contributing to Netflix's success is the introduction of advertising as a new source of revenue. The company has already seen significant growth by introducing a lower-cost subscription that shows ads to users. Netflix plans to make a significant contribution from advertising revenue to its overall business from 2025.

With revenue growth of 15 percent in the first quarter and a net profit of $2.3 billion, Netflix is ​​the industry leader, while competitors such as Walt Disney continue to struggle with losses in their streaming offerings. Netflix's future looks bright as the company continues to work on new strategies to increase its revenue and improve customer satisfaction.