The platform's growth rate in the first quarter was 4%, but it estimates only 3% growth for Q2, with operating income maintaining stable and operating margin slightly decreasing. This is partly due to the delay of Netflix’s decision to postpone password sharing, in order to avoid losing its existing customer base. In the same quarter last year, the platform lost subscribers for the first time, resulting in concern regarding market saturation. However, it didn't happen and Netflix currently has a total of 232.5 million users.

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The streaming platform plans to launch paid sharing in Q2, in a way that reflects regional differences regarding pricing. Netflix is open to a range of strategies on various pricing, having reduced the cost of the service in emerging markets while increasing the rates in more prosperous countries. However, the platform may be satisfied with its Q1 revenue of $8.16 billion and the expected $8.24 billion for the current quarter - see the chart in the first comment.

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The company was pleased with the success of its advertising tier launch, with memberships on this tier above its initial expectations. It has also stated that the ad subscription is delivering more revenue per customer than the regular plan within the US market, claiming that it can make up the difference in subscription revenue with ad sales earnings. However, the ad tier will be introduced gradually as Netflix considers various possibilities.

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As a cherry on top, Bloomberg reports that at the end of Q3, Netflix will deliver its DVDs to customers for the last time, finally ending the mail-order rental business that it began 25 years ago.

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#StreamVX #SzymonKarbowski #Netflix

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