Earlier today, Netflix released its 3rd quarter earnings statement. Now during the 3rd quarter 2019 earnings interview, Netflix executives said they are monitoring password sharing and are looking at consumer-friendly ways to push back at the edges of password sharing. This could be bad news for families who share a single account among multiple family members not living together. Netflix did not state exactly what they are planning to do to push back on password sharing.
Netflix executives also talked about releasing a show all at once vs. weekly. According to Netflix, when they release a show all at once, it generates more viewing and more social media buzz compared to markets where it releases shows every week.
This is an interesting take from Netflix as we have learned that both Apple TV+ and Disney+ will be releasing their shows weekly. According to reports, Disney hopes releasing shows weekly will help keep customers subscribed instead of just binge-watching and canceling the service after they watched their show. Now that we are just weeks away from Apple TV+ and Disney+ launching, we will have an opportunity to see which system will be successful.
In a Quarter 3 shareholders letter, Netflix reports that it grew to $5.2 billion in revenue, up 31% over the prior year. Operating income has doubled to $1 billion. Netflix also topped 158 million subscribers worldwide. You can learn more about Netflix’s 3rd quarter earnings HERE.
Do you share your Netflix password with friends and family? Leave us a comment and let us know if this news worries you.
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