Netflix, an American streaming service platform, has reported a significant surge in profits for the first quarter of this year, citing efforts to crack down on password sharing as a contributing factor.

During this period, the streaming giant announced a remarkable addition of 9.3 million new subscribers, bringing its total subscriber count to nearly 270 million.

The company’s profits for the quarter surpassed $2.3 billion (£1.85 billion).

However, starting next year, Netflix will cease disclosing its key subscriber numbers, emphasizing that subscriber growth is just one facet of its overall expansion strategy.

Netflix urged investors to shift their focus to its profits and revenue.

In the first quarter, Netflix’s revenue surged by approximately 15% compared to the previous year, reaching $9.37 million.

The decision to halt reporting subscriber numbers prompted speculation among some investors that Netflix’s customer growth may be slowing down.

Similar to other tech giants such as Meta (formerly Facebook) and X (formerly Twitter), Netflix shares dropped by almost 5% following this announcement.

In 2022, Netflix last increased the price of its “standard” plan, resulting in a temporary decline in subscribers and concerns about its market dominance.

In response, Netflix implemented measures to curb password sharing and introduced a more affordable plan featuring advertisements.

Expanding into sports and video games, while continuing to license content from other media firms, has been part of the company’s strategy.

Analysts attribute Netflix’s success to its global reach, which ensured a consistent flow of new shows despite disruptions in the Hollywood industry.

Since the beginning of this year, Netflix shares have surged by over 30%, approaching their peak in 2021.

Founded in 1997 by American entrepreneurs Reed Hastings and Marc Randolph, Netflix is an American subscription video-on-demand over-the-top streaming service that distributes original and acquired films and dramas across various genres.