Online video streaming platform Netflix has released its latest financial report, which shows growth in revenue and paid memberships during the January-March period of 2023. iT announced a 3.7% increase in year-on-year revenue, totaling $8.1 billion for the quarter.
According to the corporation, the data is satisfying because Netflix has since expressed contentment with the success of the trial markets for the paid sharing feature, which is intended to fully bring to an end password sharing.
The trial markets included Canada, New Zealand, Spain, and Portugal. To this end, Netflix intends to introduce this feature in more markets during Q2.
As per the quarterly guidance given earlier, the revenue highlighted an anticipated 4% yearly growth. However, the operating income for Q1 2023 dropped compared to the same period in 2022. The drop was attributed to the timing of hiring and content expenditure, along with ongoing expense management, which impacted the bottom line.
The financial forecast for the remainder of the year is somewhat uncertain. The implementation of the paid sharing feature to more markets has been postponed, resulting in some membership growth and revenue benefits that will now be realized in Q3 instead of Q2. Due to currency fluctuations, the operating profit and revenue are projected to remain steady or marginally decline.
Netflix has since decreased its prices in emerging markets such as Kenya. Its premium plan now costs KES 1100 from KES 1450, which offers 4K streams that can be watched on four screens. The Standard package costs KES 700, whereas the Basic and Mobile plans now go for KES 300 and KES 200 respectively.
Kenya is also one of the few countries where Netflix users can access select shows and films for free on their mobile devices.