In the last quarter, Netflix exceeded expectations by adding 5.9 million new subscribers, partially due to cracking down on password-sharing households. 

The streaming giant reported a profit of $1.8 billion on revenues of $8.3 billion, reaching a total of 238 million subscribers worldwide.

Amidst the positive financial results, the entertainment industry faced challenges with strikes from writers and actors, marking the first time both unions have walked out since the 1960s. Netflix’s co-chief executive, Ted Sarandos, expressed a desire to reach an agreement with the striking parties promptly.

Despite the strike’s impact on the industry, analysts believe Netflix is better equipped to weather the storm compared to traditional media companies. 

Last year, Netflix experienced a temporary loss of subscribers but has since regained momentum, especially after taking measures against password sharing, which more than 100 million households had been participating in.

To further diversify revenue streams, Netflix introduced an ad-supported subscription last year. Recently, they dropped their cheapest commercial-free monthly plan in the US and UK, aiming to drive more sign-ups for the ad-supported option priced at $6.99 per month in the UK. 

Deutsche Bank analysts predict that “paid sharing” will boost Netflix’s revenues through 2023, and the company’s international audience and successful original shows like Squid Game and Money Heist continue to drive growth.

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