Netflix targets the roughly 100 million households worldwide who stream Netflix shows for free, including Squid Game. Photo: Noh Juhan | Netflix
Netflix posted a jump in subscriber numbers as the streaming giant's crackdown begins to pay off. with another household.
The move, first launched in May, targets the estimated 100 million households around the world who watch Netflix shows for free.
This is an attempt to revive the growth of the streaming service after years of lax password-sharing policies.
The £4.99 'additional member' fee in the UK is expected to bring even more customers to the ad-funded tier of Netflix.
Netflix now has 238.4 million members, up 8% from a year ago.
The rise in subscribers will be a boon for the company, which is battling an industry-wide downturn in the streaming market.
The Crown and Squid Game maker announced its first drop in subscribers in a decade last year amid fierce competition from competitors like Disney+ and Amazon Prime.
Following the launch of the ad-funded tier, Netflix also cut prices in more than 30 countries to resume growth, acknowledging the cost-of-living crisis that has forced consumers to tighten their belts.
Overall, Netflix sales rose 2.7% to $8.18bn (£6.32bn), lower than forecasts of $8.3bn in the three months to the end of June. Net income up 10% to $1.44 billion
Netflix's share price fell more than 7% after hours after the update.
Analysts and investors will be watching closely to see how Netflix will be affected by the wave of strikes in Hollywood.
Both the Writers Guild of America and the SAGAFTRA union have quit for the first time in 60 years over a payroll scandal and the looming threat of artificial intelligence.
Executives said they expect “uneven” cash flows from strikes next year, indicating the breadth of their potential impact.
The strikes have brought production to a standstill in Hollywood and raised fears of a drought to come blockbusters and TV shows.
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Ted Sarandos, co-CEO of Netflix, has previously downplayed the impact of the strikes, insisting that the company has a “pretty solid list of releases” to help it weather the storm.
The streaming giant's recent releases include The Deepest Breath, a documentary about the dangerous world of freediving.
In January, Netflix founder Reed Hastings stepped down from as Executive Director and became Executive Chairman instead. Greg Peters was named co-CEO along with Mr. Sarandos.
Earlier this year, the company also announced the closure of its 25-year-old DVD-by-mail service.
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