San Francisco: Streaming giant Netflix reported a huge spike in subscribers after it began cracking down on the nagging problem of password sharing by users.
Adding 6 million more, Netflix flaunted a total of 238 million subscribers in the recent quarter with posting a profit of 1.5 billion, news agency AFP reported.
The rise in subscribers comes in the midst of strike by writers and actors happening in the US entertainment industry.
Citing analysts the report said that ‘Netflix is better positioned than its rivals to weather the storm’.
‘We are constantly at the table negotiating with everyone across the industry," Netflix co-chief executive Ted Sarandos was quoted as saying.
However, revenue is reportedly lower than what Netflix expectantly posted at $8.2 billion in sales over the April to June period.
The cut in revenue pushed the company’s shares down by more than 8 per cent in Wall Street.
In order to revamp revenue, Netflix in May began widely cracking down on users sharing passwords beyond their immediate family.
The move came after the company complained about more than 100 million households sharing services.
The company is now mulling over expanding the crackdown across its markets worldwide.
The newly introduced ‘borrower’ or ‘shared’ accounts allows subscribers to include ‘extra viewers for a higher price’ or they can transfer ‘viewing profiles to new accounts’.
Alongside crackdown, Netflix launched what is called ‘ad-subsidized’ offering and the company is expecting to earn $770 million in advertising in the US this year.
Moreover, it has done away with its lowest-priced ad-free plan costing $10 a month.