Netflix has pushed back the planned US rollout of its closely watched attempt to crack down on account sharing, a move it expects will weigh on memberships and revenues as it seeks to improve the quality of the new service.
The streaming video company estimated revenues would hit $8.24bn in the second quarter, less than the $8.47bn expected by Wall Street analysts, according to an earnings release on Tuesday. Its shares initially fell more than 10 per cent in after-hours trading before rebounding and recovering those losses.
Netflix said in a letter to shareholders that the “paid sharing” service — which lets customers share their account with people outside their household for a fee — had resulted in a “cancel reaction” after it was launched in some markets including Canada and Spain.