Netflix had a strong start to the year, gaining 9.3 million subscribers and seeing a significant increase in profit. The company's performance demonstrated that it is still building on the momentum from last year, when measures such as cracking down on password sharing and introducing a low-priced option with commercials helped revive its growth. In fact, Netflix added a total of 30 million subscribers in 2022, the second-largest annual increase in its history.

The company's gains in the January-March period far exceeded analysts' projections, with more than quadruple the number of subscribers added compared to the previous year. Netflix now boasts nearly 270 million subscribers worldwide, with 83 million in its largest market covering the U.S. and Canada. Investors have increasingly viewed Netflix as the leader in the streaming battle against competitors like Apple, Amazon, Disney, and Warner Bros. Discovery, leading to a significant increase in its stock price.

However, Netflix surprised investors by announcing that it will no longer provide quarterly updates on its subscriber totals starting next year. This decision, according to co-CEO Greg Peters, reflects the company's belief that focusing on long-term financial growth is more important than short-term fluctuations in subscriber numbers. The decision also comes as Netflix may have already reaped most of the benefits from measures like cracking down on password sharing.

Despite the change in reporting, Netflix's financial performance remains strong, with earnings of $2.33 billion and revenue of $9.37 billion in the most recent quarter - a 79% increase in profit compared to the same period last year. The company's emphasis on boosting profit and revenue has led to more judicious spending on original programming and regular increases in subscription prices.

Advertising sales are also playing a role in Netflix's financial success, with projections of about $1.5 billion in revenue from commercials streamed on its service this year. The low-priced option with ads has been effective in attracting and retaining subscribers, with an estimated 41 million customers expected to opt for the commercial format. Overall, Netflix's performance in the first quarter of the year demonstrates its continued growth and success in the competitive streaming market.