Netflix, which started the year with 232.5 million subscribers and grossed $8.16 billion in the first quarter, announced on Tuesday that it would shut down its historic DVD rental-by-mail service, launched 25 years ago, by the end of the year.
Netflix posted a net profit of $1.3 billion in the first quarter, down 18% year-on-year, in line with analysts’ forecasts.
After the boom enjoyed by digital platforms during the Coronavirus pandemic, Netflix had a very difficult 2022, prompting the company’s executives to focus more on diversifying revenue streams than on user growth. As a result, they launched a new, cheaper, ad-supported subscription in November.
The platform also wants to force users to pay to add profiles to their accounts, instead of sharing their passwords for free. This new method is being rolled out but has been delayed.
“This means that the expected growth in users and revenue will come in the third quarter rather than the second,” the company said.
