Netflix Focuses On New Strategy For Customer Growth

Netflix prepares a new strategy to increase user growth. (photo: dock. pexels)

JAKARTA - Netflix will focus on a new plan to keep customers growing after two quarters of a tremendous increase, which will be in the spotlight as the company reports revenue on Thursday, April 18. Some analysts warn that the profit from the code-sharing crackdown will ease.

This streaming Pioneer has experienced its strongest growth since the pandemic in the second half of 2023, with around 22 million people signing up for their services after the company reduced its share of passwords globally.

However, the spike in code-sharing enforcement is expected to slow down this year, focusing on other efforts, including ad-supported tiers and increasing focus on sports content.

Here are five things to note in Netflix's earnings report:

Subscription In March Quarter

Netflix is expected to add 5 million subscribers in the first quarter ended in March, according to LSEG data. Although nearly three times the 1.8 million additions that occurred in the same period last year, this would mark a slowdown in the massive growth observed in the last two quarters of 2023.

Enforcement Of Password Distribution

The password policy was implemented globally in May last year, where Netflix's code-sharing crackdown has prompted similar measures by streaming competitors like Walt Disney, and helped its share price rise by about a third by 2024.

However, some analysts say that this action has reached a saturation point in the United States, although it still has potential in international markets including India.

Tier Supported By Ads

Netflix has surpassed 23 million monthly subscribers for ad-supported tiers and the plan accounts for 30% of all new registrations in 12 countries, Netflix's advertising president said in January.

Content Expenditure

Netflix said during last quarter's investor call that it plans to invest up to $17 billion this year for content in a "smart, wise, and responsible" manner.

Relying On Sports Entertainment

Investors will pay attention to the company's plans for sports content after signing an interesting deal with WorldWestling Entertainment earlier this year to broadcast its flagship program, "Raw", starting next year.