Netflix Q1 - Revenue In Line

Netflix reported first-quarter results on Tuesday, with revenue in line with expectations but lower than expected subscriber growth. Sales came in at $8.16 billion with only 1.75 million new paid subscribers, which was 20% below what analysts had predicted.

They're spending a lot on content, around $17 billion a year, and are still figuring out how to balance profits and subscriber numbers. They're trying to boost revenue by cracking down on password sharing. They estimate that over 100 million people use accounts they do not pay for. They've rolled out measures in a few countries already and it seems to be working, although they acknowledge that near-term engagement might shrink modestly.

The streaming giant is also trying out a cheaper, ad-supported plan to appeal to more viewers. They've been pleased with its performance so far and might offer multiple ad-supported tiers in the future.

According to Nielsen, Netflix is still the most popular TV network in the US, accounting for over 7% of all TV viewing each month. The Asia-Pacific region remains Netflix's biggest source of new customers, with the service adding 1.46 million customers there in the first quarter of 2023.

Finally, Netflix recently said goodbye to its DVD mailing business and apologized for a glitch that left viewers unable to watch a live airing of "Love is Blind." Overall, we still like Netflix and we're happy to see them test out new pricing models to stay ahead of the game.