Password crackdown boosts Netflix with more than 5m new customers signing up over the summer

More than 5m people signed up to Netflix over the summer as a crackdown on password sharing and a raft of hit shows boosted business.

The US streaming giant said subscriber numbers rose by 5.1m to hit 283m in the three months to September 30.

The surge came as it cashed in on initiatives to clampdown on account sharing by forcing viewers to pay to watch its shows rather than using a borrowed password.

The number of paying customers was slightly higher than the 282m analysts had forecast. 

But it was a slower rise compared to the same quarter last year, when 8.8m new users signed up.

While Netflix thrived during Covid when many people were housebound, afterwards analysts questioned if it could maintain this momentum.

But revenues grew 15 per cent to £7.6billion compared to the same period last year, topping the expectations of Wall Street experts.

Many have also signed up to watch Netflix shows including Emily in Paris, which stars Lily Collins, The Perfect Couple, featuring Nicole Kidman, and the controversial global sensation Baby Reindeer.

Last night was one of the last times Netflix will update shareholders on subscriber numbers as it plans to turn its focus to other metrics such as revenue next year.

Last week the business posted its highest-ever UK revenues after a crackdown on password sharing boosted business. 

Revenues hit £1.7billion last year, up 8 per cent from 2022, according to accounts filed by its British subsidiary Netflix Services UK. 

Profits in the UK jumped almost 80 per cent to £61million.

The US group put this down to a ‘larger member base’, and said the number of paid subscribers grew 7 per cent. 

Last year, Netflix started charging an extra £4.99 a month to add someone in a different household to an account.

Previously, users had been able to share passwords. More subscribers signed up despite rises. Netflix’s global base reached 270m in April.

DIY INVESTING PLATFORMS

AJ Bell

AJ Bell

Easy investing and ready-made portfolios

Hargreaves Lansdown

Hargreaves Lansdown

Free fund dealing and investment ideas

interactive investor

interactive investor

Flat-fee investing from £4.99 per month

Saxo

Saxo

Get £200 back in trading fees

Trading 212

Trading 212

Free dealing and no account fee

Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.

Compare the best investing account for you