A highly unpopular move by Netflix is paying off
Netflix saw its subscribers grow to a record 269 million in Q1 thanks to its crackdown on password sharing.
Caroline Woods brings the latest business headlines from the floor of the New York Stock Exchange as markets close for trading Friday, April 19.
Full Video Transcript Below:
CAROLINE WOODS: I’m Caroline Woods reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Stocks are finishing up what was a rough week on Wall Street on renewed fears that interest rates may stay higher for longer. Economists now see the Fed lowering rates in September, with some anticipating no rate cuts at all in 2024. Fed President Neal Kashkari told Fox News on Thursday that the central bank needs to be patient and that the first rate cut may not happen until 2025.
In other news, Netflix’s crackdown on passwords seems to be working. The streaming giant added over 9 million subscribers in its first quarter, bringing its total to a record 269 subscribers. The company also reported a big jump in revenue with profits soaring to 2.3 billion dollars in the quarter.
The company also saw success from its newly introduced ad tier. While Netflix didn’t share exactly how many new subscribers paid for ads, it did see its ad membership grow 65 percent from 2023.
While its quarterly subscribers surpassed Wall Street estimates, Netflix reported a drop in growth from its fourth quarter earnings report when it added 13 million new subscribers. Netflix says after this quarter it will no longer be sharing its subscriber figures.
Netflix shares are up over 30 percent since the start of 2024.
That’ll do it for your daily briefing. From the New York Stock Exchange, I’m Caroline Woods with TheStreet.
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