News Article:
Netflix Inc. NFLX 0.29%increase; green up pointing triangle
said it would roll out new password-sharing limitations more broadly—including in the U.S.—by the end of June, and announced it would soon wind down the DVD-by-mail business that the company was built upon.

Netflix added 1.75 million subscribers in the first quarter and ended the period with 232.5 million customers. After losing subscribers for the first time in a decade a year ago, the company took a series of steps to expand its customer base, including launching an ad-supported tier of service and starting to limit password sharing.

The strategic changes highlight the streamer’s ongoing transition from an upstart that shipped discs in red envelopes to a global entertainment giant focused on increasing its profitability.

“In short, we’re off to a good start in 2023,” the company said in a letter to shareholders. The quarter was the first under new co-Chief Executives NAME_1 and NAME_2, after co-founder and former co-CEO NAME_3 stepped down in January to become executive chairman.

Netflix has said that convincing account sharers to pay for their own subscription or have primary account owners pay extra to continue sharing with people outside their household will be an important source of new revenue. More than 100 million people watch Netflix using borrowed accounts.

Revenue rose 3.7% year-over-year to $8.17 billion in the first quarter, while net profit fell to $1.31 billion from $1.6 billion. The company’s operat