Netflix experienced a surge in new sign-ups towards the end of last year, as users, prompted by the company's efforts to curb password sharing, opted to create individual accounts.
During the three months concluding in December, the streaming giant witnessed an addition of over 13.1 million subscriptions. This marked the highest quarterly increase since 2020, continuing a growth trend initiated the previous year.
"We largely put price increases on hold as we rolled out paid sharing. Now that we're through that, we're able to resume our standard approach," co-chief executive Greg Peters told BBC.
"The summary statement might be, 'back to business as usual'."
Many new members opted for the most economical plan, unbothered about the prospect of seeing advertisements.
In the 12 countries where Netflix offers ad-supported content, including major markets like the UK and US, this plan constituted 40% of the newly registered accounts.
This development presents an ironic turn for the company, which had resisted incorporating ads for years, citing potential negative impacts on the viewer experience and concerns about complicating its business with privacy risks and other issues.
However, the company faced an unexpected decline in subscribers in the first half of 2022, followed by a drop in profits. This prompted a reevaluation, leading Netflix to explore new strategies to attract viewers and generate additional revenue. In addition to advertisements and the crackdown on password sharing, the company is experimenting with more live events to expand its audience, BBC reported.
The media outlet reported that Netflix announced a 10-year, $5 billion deal to bring WWE Raw-pro wrestling's most popular weekly show- to the platform.
Many of the rivals are experimenting with the same thing.
Paolo Pescatore, an analyst at PP Foresight, said the numbers validated Netflix's strategy.
"Another cracking quarter to finish the year," he said. "These latest results reaffirm that Netflix is firmly the king among all streamers."
The platform received 18 Oscar nominations on Tuesday, including "Best Picture" for Maestro starring Bradley Cooper and Carey Mulligan.
Shares jumped more than 6% in after-hours trade.
For the year, Netflix reported more than $33.7bn in revenue in 2023, up more than 6% over 2022.
