With cash tight, subscribers were expected to cut back on streaming services, the theory goes.
But Netflix bucked that trend late last year, adding more than seven million new subscribers, far more than analysts were expecting.
Harry and Meghan’s revelations were a big draw, as was new series Wednesday and the film Glass Onion.
Chief Executive Reed Hastings welcomed the stronger figure but announced he would be stepping down as chief executive.
His long-planned move means he leaves the company he founded in a crowded market, with challenges ahead, but with 231 million registered viewers worldwide.
Mr. Hastings, who was an early pioneer in the streaming business and is recognized as one of the original disruptors of the technology industry, will continue to serve as Executive Chairman.
The firm is now led by Ted Sarandos and Greg Peters, both of whom already hold senior positions.
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“Reed Hastings’ resignation from his current position raises many questions about Netflix’s future strategy,” said Jamie Lumley, an analyst at market research firm Third Bridge.
“New Co-CEO Greg Peters will have a number of important decisions to make, from managing high expenses to sharing passwords and cracking the code to find the next Stranger Things.”
They’re off to a strong start, with total subscribers growing by 7.66 million over the last three months of 2022, while analysts had forecast an increase of around 4.5 million.
In early 2022, Netflix faced an uphill battle. It faced increasing competition from rivals like Amazon, HBO, Apple TV, and Disney. It cut hundreds of jobs but still had to raise prices to customers to cover rising costs.
This put a damper on the number of subscribers in the first half of the year.
In November, it rolled out a cheaper ad-supported option in 12 countries, signaling that it would be less tolerant of password sharing going forward.
Netflix stock, which had fallen nearly 38% over the past year, rose in after-hours trading following the earnings release.
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