Netflix surpasses analysts’ expectations in subscriber growth
Streaming giant Netflix has once again exceeded projections, with 1.75 million new subscribers added in the first quarter of 2023. This figure surpassed analyst predictions by nearly 550,000 and marks the third consecutive quarter in which Netflix has outperformed expectations. Last year, the company experienced a significant drop in subscribers, losing 200,000 during the same period.
Despite the impressive growth, Netflix reported an 18% decline in earnings from the previous year, earning $1.3 billion, or $2.88 per share, in Q1 2023. Revenue also rose slightly to $8.16 billion, though this was lower than expected. To mitigate the subscriber loss last year, the company introduced a low-priced version of its service featuring commercials and phased in a crackdown on password sharing. The company also stopped estimating the number of new subscribers they could acquire per quarter to shift investor focus from audience size to financial results.
Netflix announces closure of DVD-by-mail service
Alongside the announcement of subscriber growth, Netflix revealed that it would be ending its DVD-by-mail service. The service, which has been in operation for 25 years, had over 16 million subscribers in the US and generated $145.7 million in revenue in 2022. However, the number of subscribers has been steadily decreasing over the past decade, prompting the company to finally discontinue the service.
SOURCE: Ref-By Euronews with AP
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