Netflix’s crackdown on password sharing has helped it gain more paid users as the streaming giant added more than 13.1 million subscriptions in the fourth quarter (Q4) of 2023 which ended on December 31.
The company said in its quarterly earnings that price increases in the US, UK, and France went better than it had anticipated.
“We largely put price increases on hold as we rolled out paid sharing. Now that we’re through that, we’re able to resume our standard approach,” Netflix co-chief executive Greg Peters said during a call with analysts.
Peters said the company will continue to monitor other countries and try and assess “when we’ve delivered enough additional entertainment value”.
“We look at engagement, retention, acquisition as the signals there so that we can go back to members and ask them to pay a bit more to keep that positive flywheel going and we can invest in more great films, series, and games for those members,” he said.
“The summary statement might be back to business as usual”.
The company exited 2023 with 12 percent revenue growth, up from 6 percent in 2022, and increased free cash flow to $6.9 billion.
Paid net additions reached 13.1 million in Q4 2023 as compared to 7.7 million in Q4 2022 — the company’s largest Q4 ever. In Q4 2023, operating income amounted to $1.5 billion, up from $0.5 billion in the year-ago period.
“For 2023, we generated $7 billion of operating income, up 23 percent year over year,” said Netflix.
