Tech Desk 
Jul 19, 2024
It’s been some time since Netflix began cracking down on password sharing, that only people in the same location can share a Netflix account.
However, the number of new subscribers has been decreasing in recent quarters — probably a result of the measures taken to prevent password sharing.
Netflix subscribers rise amid boosting ad revenue
According to a report by Reuters, data from LSEG (London Stock Exchange Group) unveiled that Netflix’s growth has been slowing since the first quarter of 2024.
Netflix gained 4.82 million subscribers in the second quarter, which would be the lowest number compared to the first quarter of 2023.
Moreover, Netflix gained almost 15 million subscribers in the fourth quarter of 2023. However, the company is facing challenges to gain new subscribers.
Additionally, Netflix is successfully boosting its revenue from ads. That’s because it is constantly pushing its most affordable ad-based plan, which is priced at $6.99 per month in the US.
Previously, Netflix phased out its most affordable ad-free plan, which cost $11.99 per month. Netflix users who need to get rid of ads must update to the Standard plan, which is available at $15.49 per month. The 4K plan, which is also ad-free, is priced at $22.99 per month.
Read more: Netflix revamps homepage with simplified design
LSEG estimates that the company’s ad revenue more than doubled in the June quarter, reaching $9.53 billion – the highest growth since the second quarter of 2021.
Netflix isn’t the only platform investing in new ad-based plans. Disney+ introduced a cheaper plan with ads in 2022, whereas, it started cracking down on password sharing earlier this year.
According to rumours, Apple TV+ is also considering launching an ad-supported plan. The company recently boosted the subscription price from $6.99 to $9.99 per month in the US. In the last quarter, Apple TV+ overtook Paramount+ in the US streaming market share and is now getting closer to Hulu and Disney+.
There are many other rivals of Netflix, which are providing affordable ad plans to the users.
