Netflix delays broad rollout of password-sharing crackdown as it posts mixed results, kills DVD mailing business

Netflix delayed the broad rollout of its password-sharing crackdown, which was originally planned for the first quarter, as the company’s earnings topped Wall Street’s estimates, while revenue came in slightly under analysts’ expectations.

Lillian Rizzo for CNBC:

“While this means that some of the expected membership growth and revenue benefit will fall in Q3 rather than Q2, we believe this will result in a better outcome from both our members and our business,” the company said in its earnings release.

The company said it saw its subscriber growth impacted in the international markets where it has already rolled out such initiatives.

Here are the results Netflix reported Tuesday versus estimates from analysts polled by Refinitiv:

• Earnings per share: $2.88 vs $2.86 expected
• Revenue: $8.16 billion vs $8.18 billion expected

On Tuesday, Netflix said goodbye to what got it started — its DVD mailing business, in which it would send out the discs in red envelopes to customers. The company’s CEO Ted Sarandos said in a blog post that it would finally wind down the DVD business, which “continues to shrink.”

MacDailyNews Take: Netflix still mailed DVDs? 🤣

When Netflix finally does institute its password sharing crackdown, it could lead to an uptick in Apple TV+ subscriptions as Apple’s streaming service is significantly more affordable ($6.99 per month) while offering a rapidly growing library of high-quality, major award-winning TV series and films.

More about “Sharing your Netflix account” from the company here.

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[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]