The world’s largest streaming service, Netflix, reported on Wednesday that over the three months ending in June, it added roughly six million subscribers, bringing its total to over 238 million.
The business said it has now introduced paid sharing—an attempt to persuade customers to cease sharing accounts with others for free—in more than 100 countries. According to Netflix, sales in those areas are currently greater than they were before the service began, and “sign-ups are already exceeding cancellations.”
The results come at a crucial time for Netflix as the streaming service attempts to increase revenue by prohibiting password sharing and introducing an ad-supported subscription option while also coping with a new challenge: strikes by both the Hollywood actors’ and writers’ unions that could have an impact on its upcoming slate of original shows and movies.
The revenue for the quarter increased thanks to Netflix’s changes, but it was slightly below what Wall Street experts had predicted. In contrast to the $8.3 billion that Wall Street had anticipated, Netflix reported nearly $8.19 billion in revenue for the quarter. Additionally, it reported net income of $1.49 billion, an increase of 3% from the same time last year.
“While we’ve made steady progress this year, we have more work to do to reaccelerate our growth,” the company wrote in a note to investors on the outcomes. Although the firm reported a twofold increase in subscribers to its cheaper, ad-supported plan over the year’s first three months, it said that “current ad revenue isn’t material for Netflix.”
Netflix said that it anticipates $8.5 billion in revenue for the current quarter, a 7% rise over the same period last year but less than the almost $8.7 billion analysts were anticipating. The business stated that it expects paid net additions to be comparable to the amount in the June quarter in the September quarter.