- Netflix experienced a surge in subscribers, gaining nearly 6 million new users, reaching a total of 238 million subscribers, and generating a profit of $1.5 billion in the recent quarter.
- The increase in subscribers comes amid a potentially crippling writers and actors strike in the US entertainment industry. However, analysts believe Netflix is better positioned than its competitors to weather the storm.
Why it matters
The crackdown on password sharing contributed to the subscriber growth, as Netflix seeks to bolster revenue. To further boost income, the company has introduced ad-supported subscriptions and eliminated its lowest-priced ad-free plan. Netflix aims to develop advertising into a multi-billion dollar revenue stream and generate substantial ad revenue by 2024.