Netflix has reported that its revenue in each region is now higher than before it launched its paid sharing feature, which allows users to share their accounts with other households for a fee.
The company also said that sign-ups have already exceeded cancellations in the second quarter of 2023.
In its final Q2 2023 shareholder letter, Netflix said that it successfully launched paid sharing in more than 100 countries, representing over 80% of its revenue base, in May. The feature aims to tackle account sharing between households, which Netflix said “undermines our ability to invest to improve Netflix for our paying members and grow our business”.
The company added that it saw “healthy conversion of borrower households into full paying Netflix memberships” as well as the uptake of its extra member feature, which allows users to add more profiles to their accounts.
It also said that it was “revenue and paid membership positive vs. prior to the launch of paid sharing across every region” in its latest launch.
Netflix reported that it added 5.9 million paid net additions in Q2, and that it was rolling out paid sharing to almost all of the remaining countries today.
In these markets, Netflix said that it was not offering an extra member option, as it had recently cut prices in many of these countries and penetration was still relatively low.
“Households borrowing Netflix will be able to transfer existing profiles to new and existing accounts,” the company said in the letter.
Netflix said that it expected paid sharing to be a “meaningful driver of incremental revenue and membership growth” in the long term.