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Netflix has surpassed Q2 expectations with 44% profit surge
Netflix has seen profits surge 44% year-on-year in Q2 2024, driven by password sharing clampdowns and hit shows.
As a result of the success of Netflix’s strategy to mitigate free sharing and convert these users into paying subscribers, Disney+ has made its own plans to enact stricter password-sharing policies in the hope of driving growth. “We’re clearly seeing healthy organic growth in the business, but we’re also continuing to get better and better at translating improvements in our service into business value, including getting better and better at converting unpaid accounts,” said Netflix’s CFO Spencer Neumann to analysts on Thursday, adding “On the paid member front, we’re also probably benefiting from that attractive entry point in terms of price point and feature set for our ads plan.” In addition, they expect global average revenue per paid member to be roughly flat year-on-year in quarter three due to “ongoing [foreign exchange] headwinds and plan and country mix.”
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