Â鶹´«Ã½

Skip to main content

The Netflix password crackdown may finally be happening

Share

Netflix began clamping down on password sharing in four additional countries earlier this year, but opted not to expand more broadly after it "found enough improvement opportunities" from early launches.

The delayed timing, announced in the company's latest earnings results, may have added to the company's challenges in growing its subscriber base during the March quarter.

The company reported a net increase of 1.75 million global streaming subscribers, up nearly 5 per cent from the same period in the prior year, but below the more than 3 million Wall Street analysts had expected.

Netflix said it has seen a "cancel reaction in each market when we announce the news" about the paid sharing option, but then it sees "increased acquisition and revenue." By delaying the rollout, however, Netflix said "some of the expected membership growth and revenue benefit will fall in Q3 rather than Q2."

Tuesday's earnings report marks the first for new co-CEOs Greg Peters and Ted Sarandos, after founder Reed Hastings handed over the role and became executive chairman in January.

It was a crucial quarter for Netflix, as the company seeks to grow a number of new revenue opportunities following rocky performance last year, including shedding 200,000 subscribers in the year-ago quarter, which sparked a major selloff. The company has also been working to grow its new ad-supported subscription offering, which launched last year.

"Engagement on our ads tier is above our initial expectations and, as expected, we've seen very little switching from our standard and premium plans," the company said in its Tuesday subscriber letter.

Netflix reported revenue of around US$8.2 billion for the quarter, up nearly 4 per cent from the same period in the prior year and in line with analysts' projections. The company's quarterly income fell 18 per cent to US$1.3 billion.

Netflix said it expects revenue to grow by nearly 5 per cent to US$8.2 billion during the three months ended in June, but projects quarterly profits to fall by more than 19 per cent from the same period in the prior year.

The report comes days after Netflix bungled what was supposed to be its second-ever live show — the season 4 "Love is Blind" reunion — and had to apologize to frustrated fans and tape the special for streaming. Unlike its streaming rivals, Netflix had long been resistant to live streaming because of its high costs. But, facing steeper competition, Netflix has started to experiment with the format, one it apparently has not yet perfected.

Netflix also said Tuesday that it would officially wind down the DVD rental service that made it a household name this fall.

CTVNews.ca Top Stories

A team of tornado experts is heading to Fergus, Ont. after a storm ripped through the area Sunday night.

Why brain aging can vary dramatically between people

Researchers are uncovering deeper insights into how the human brain ages and what factors may be tied to healthier cognitive aging, including exercising, avoiding tobacco, speaking a second language or even playing a musical instrument.

Local Spotlight

For the second year in a row, the ‘Gift-a-Family’ campaign is hoping to make the holidays happier for children and families in need throughout Barrie.

Some of the most prolific photographers behind CTV Skywatch Pics of the Day use the medium for fun, therapy, and connection.

A young family from Codroy Valley, N.L., is happy to be on land and resting with their newborn daughter, Miley, after an overwhelming, yet exciting experience at sea.

As Connor Nijsse prepared to remove some old drywall during his garage renovation, he feared the worst.

A group of women in Chester, N.S., has been busy on the weekends making quilts – not for themselves, but for those in need.

A Vancouver artist whose streetside singing led to a chance encounter with one of the world's biggest musicians is encouraging aspiring performers to try their hand at busking.

Ten-thousand hand-knit poppies were taken from the Sanctuary Arts Centre and displayed on the fence surrounding the Dartmouth Cenotaph on Monday.

A Vancouver man is saying goodbye to his nine-to-five and embarking on a road trip from the Canadian Arctic to Antarctica.