Video streaming service Netflix saw subscriptions increase by more than 10% during the last quarter as a result of account sharing restrictions introduced several months ago.
Over the period July-September, a total of 8.76 million new customers signed up for the service, marking the strongest quarterly growth in years.
In a statement, Netflix claimed that it was reaping the benefits of its new policy of restricting account sharing, which resulted in "substantial" numbers of people signing up for the service. According to the company's own estimates, more than 100 million households previously let other people use their accounts.
Netflix also noted that its subscription cancellation rate "remains low, below what we anticipated".
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The California-based company now has a total of more than 247.1 million subscribers and is predicted to add approximately 20 million more this year. This is significantly greater than the 9 million new subscribers Netflix reported in 2022.
Due to the surge in subscriptions Netflix's revenue rose by 8% over the last quarter compared to the same period last year, reaching $8.5 billion – nearly $1.7 billion of which was profit. Netflix's shares also surged by 11% on Wednesday following the announcement of its bumper quarterly revenue.
Netflix also announced price increases in several key markets. In particular, the company will raise the price of its most expensive subscription package in the United States by $3, to $23 per month. The price of a normal subscription in the US will also increase from $10 to $12 dollars. In the United Kingdom and France, two other key markets, similar price increases are expected to be announced soon.
