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Password crackdown leads to more income for Netflix

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screen with netflix login

Enlarge (credit: Bloomberg)

Netflix’s crackdown on password sharing helped the streaming service blow past Wall Street’s earnings forecasts, but its shares fell after it said it planned to stop regularly disclosing its subscriber numbers.

The company’s operating income surged 54 percent in the first quarter as it added 9.3 million subscribers worldwide, proving that the efforts to reduce password sharing it launched last year have had more lasting benefits than some investors expected.

However, Netflix said on Thursday that from next year it would stop revealing its total number of subscribers, a metric that has been a crucial benchmark for investors in the streaming era.

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