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Netflix’s Sign-Ups Surge as Password-Sharing Crackdown Boosts Revenue

Netflix's crackdown on password-sharing led to a surge in sign-ups, with the streaming giant adding over 13.1 million subscriptions in the last quarter of 2022, the highest number since 2020.

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Netflix experienced a surge in new sign-ups at the end of last year due to its crackdown on password-sharing. The streaming giant added over 13.1 million subscriptions in the last three months of 2023, the highest number for any quarter since 2020. Netflix expressed confidence in its growth trajectory and announced plans to raise prices. Despite the crackdown, many new members opted for the company’s cheapest plan, even though it includes advertisements. This unexpected growth comes after a decline in subscribers and profits earlier in the year, prompting Netflix to explore new strategies to attract viewers and increase revenue.

In addition to the password crackdown, Netflix is experimenting with more live events to attract new audiences. It recently announced a 10-year, $5 billion deal to bring WWE Raw, the most popular weekly pro-wrestling show, to its platform. Other streaming companies, such as Amazon, are also making similar moves to expand their offerings. While Netflix initially resisted selling ads, it has now embraced this strategy to generate more income per account. The company charges lower prices for its standard plan with advertisements compared to the ad-free version. However, Netflix does not expect advertising to significantly contribute to its growth this year.

Despite concerns from analysts that sign-ups would suffer without a standout hit, Netflix added more new subscribers than expected in the last quarter. The company attributed this to a strong lineup of programs, including popular series like the Beckham documentary and Adam Sandler’s Leo. Netflix also received 18 Oscar nominations, further highlighting its success. The news of the surge in sign-ups caused shares to increase by over 6% in after-hours trade. Overall, Netflix reported revenue of over $33.7 billion in 2023, a 6% increase from the previous year, with profits reaching $5.4 billion.

In conclusion, Netflix’s crackdown on password-sharing led to a surge in new sign-ups, resulting in the highest number of subscriptions for any quarter since 2020. The company is confident in its growth path and plans to raise prices. Despite the crackdown, many new members opted for the cheapest plan, which includes advertisements. Netflix is also exploring other strategies, such as live events, to attract new viewers. The unexpected growth in subscribers and the strong lineup of programs contributed to Netflix’s success, as evidenced by its Oscar nominations.

Original news source: Netflix password crackdown fuels sign-up surge (BBC)

🎧 Listen:

Slow

Normal

Fast

📖 Vocabulary:

1surgeA sudden powerful forward or upward movement
2crackdownA severe or urgent enforcement action
3trajectoryThe path or direction that something or someone moves along
4optedChose or selected from a range of options
5advertisementsMessages intended to promote products or services
6declineA decrease or downward trend
7strategiesPlans or methods developed to achieve a goal
8revenueIncome generated from business activities
9analystsExperts who analyze and provide insights on financial data
10standoutExceptionally good or prominent
11attributedCredited or ascribed a result to a particular cause
12nominationsOfficial recognitions of achievement, typically for artistic work
13after-hoursTrading that takes place after the official close of the stock market
14profitsMonetary gains after all expenses have been paid
15evidencedShown or proven by evidence

Group or Classroom Activities

Warm-up Activities:

– News Summary

Instructions: Ask students to read the article and write a summary of the main points in their own words. They should include information on Netflix’s surge in new sign-ups, its crackdown on password-sharing, the addition of WWE Raw to its platform, and its plans to raise prices. Encourage them to use their English language skills to accurately convey the key information.

– Opinion Poll

Instructions: Divide the class into pairs or small groups. Ask each group to come up with three questions related to the article, such as “Do you think Netflix’s crackdown on password-sharing is fair?” or “Would you be willing to pay more for a Netflix subscription if it included live events?” Have each group ask their questions to the other groups and record their responses. Afterward, facilitate a class discussion where groups can share their findings and discuss different perspectives.

– Vocabulary Pictionary

Instructions: Create a list of vocabulary words from the article, such as “surge,” “crackdown,” “subscriptions,” “advertisements,” and “nominations.” Divide the class into teams and give each team a set of vocabulary words. One member from each team should come to the front of the class and draw a picture to represent one of the words, while their teammates try to guess the word. The team with the most correct guesses wins.

– Pros and Cons

Instructions: Divide the class into two groups. Assign one group to create a list of pros (advantages) of Netflix’s crackdown on password-sharing, and assign the other group to create a list of cons (disadvantages). Give each group time to discuss and write down their points. Then, have a class debate where each group takes turns presenting their arguments. Encourage students to use persuasive language and support their points with evidence from the article.

– Think-Pair-Share

Instructions: Ask students to think about and write down their answers to the following question: “What strategies do you think Netflix could use to continue attracting new viewers and increasing revenue?” After a few minutes, have students pair up and share their ideas with their partner. Encourage them to discuss and elaborate on their ideas, as well as listen to their partner’s suggestions. Finally, facilitate a class discussion where pairs can share their ideas with the whole class.

🤔 Comprehension Questions:

1. What was the reason behind Netflix experiencing a surge in new sign-ups at the end of last year?
2. How many subscriptions did Netflix add in the last three months of 2023?
3. What is Netflix’s plan in response to its growth trajectory?
4. Despite the crackdown on password-sharing, what type of plan did many new members opt for?
5. What strategy is Netflix using to attract new audiences besides the password crackdown?
6. What is the value of the deal that Netflix made to bring WWE Raw to its platform?
7. What is Netflix’s stance on selling ads?
8. What contributed to Netflix’s success and increase in sign-ups in the last quarter?
Go to answers ⇩

🎧✍️ Listen and Fill in the Gaps:

Netflix experienced a surge in new sign-ups at the end of last year due to its crackdown on password-sharing. The streaming giant added over 13.1 million subscriptions in the last three months of 2023, the highest (1)______ for any quarter since 2020. Netflix expressed confidence in its growth trajectory and announced plans to raise prices. Despite the crackdown, many new members (2)______ for the company’s cheapest plan, even though it includes advertisements. This unexpected growth comes after a decline in (3)______ and (4)______ earlier in the year, prompting Netflix to explore new strategies to attract viewers and increase revenue.

In addition to the password crackdown, Netflix is experimenting with more live events to attract new audiences. It recently announced a 10-year, $5 billion deal to bring WWE Raw, the most popular weekly pro-wrestling show, to its platform. (5)______ streaming companies, such as Amazon, are also making similar moves to expand their (6)______. While Netflix initially resisted selling ads, it has now (7)______ this (8)______ to generate more income per account. The company charges lower prices for its standard plan with advertisements compared to the ad-free version. However, Netflix does not expect advertising to significantly contribute to its growth this year.

Despite concerns from analysts that sign-ups would suffer without a standout hit, Netflix added more new subscribers than expected in the last quarter. The company attributed this to a strong (9)______ of programs, including popular (10)______ like the Beckham documentary and Adam Sandler’s Leo. Netflix also received 18 Oscar nominations, further highlighting its success. The news of the surge in sign-ups caused shares to (11)______ by over 6% in after-hours (12)______. Overall, Netflix reported revenue of over $33.7 billion in 2023, a 6% increase from the previous year, with profits reaching $5.4 billion.

In conclusion, Netflix’s crackdown on password-sharing led to a (13)______ in new sign-ups, resulting in the highest number of subscriptions for any quarter since 2020. The company is confident in its growth path and plans to raise prices. Despite the crackdown, many new members opted for the cheapest plan, which includes advertisements. Netflix is also (14)______ other strategies, such as live events, to attract new (15)______. The unexpected growth in subscribers and the strong lineup of (16)______ contributed to Netflix’s success, as evidenced by its Oscar nominations.
Go to answers ⇩

💬 Discussion Questions:

Students can ask a partner these questions, or discuss them as a group.

1. What is your opinion on Netflix’s crackdown on password-sharing?
2. How would you feel if you had to start paying for your own Netflix account instead of sharing one with friends or family?
3. Do you think the addition of advertisements to the cheapest plan will deter people from subscribing? Why or why not?
4. How do you think the inclusion of live events, like WWE Raw, will attract new audiences to Netflix?
5. What is your favorite program on Netflix? Why do you enjoy watching it?
6. Do you think other streaming companies, like Amazon, will be successful in expanding their offerings? Why or why not?
7. How important do you think it is for Netflix to have a standout hit program to attract new subscribers? Why?
8. Why do you think Netflix charges lower prices for its standard plan with advertisements compared to the ad-free version?
9. How do you think the surge in sign-ups and revenue will impact Netflix’s future growth and success?
10. Do you believe that Netflix’s success in receiving 18 Oscar nominations will lead to more subscribers? Why or why not?
11. How do you feel about Netflix’s plans to raise prices? Do you think it is fair? Why or why not?
12. What strategies do you think Netflix should explore in order to continue attracting viewers and increasing revenue?
13. How would you feel if Netflix started showing commercials during the programs you watch? Would it make you less likely to subscribe? Why or why not?
14. Do you think Netflix’s success in the last quarter is sustainable in the long term? Why or why not?
15. What impact do you think the surge in sign-ups and profits will have on the future of the streaming industry?

Individual Activities

📖💭 Vocabulary Meanings:

Match each word to its meaning.

Words:
1. surge
2. crackdown
3. trajectory
4. opted
5. advertisements
6. decline
7. strategies
8. revenue
9. analysts
10. standout
11. attributed
12. nominations
13. after-hours
14. profits
15. evidenced

Meanings:
(A) Experts who analyze and provide insights on financial data
(B) Credited or ascribed a result to a particular cause
(C) A decrease or downward trend
(D) A sudden powerful forward or upward movement
(E) Official recognitions of achievement, typically for artistic work
(F) The path or direction that something or someone moves along
(G) Monetary gains after all expenses have been paid
(H) Exceptionally good or prominent
(I) Trading that takes place after the official close of the stock market
(J) Income generated from business activities
(K) Shown or proven by evidence
(L) Plans or methods developed to achieve a goal
(M) Chose or selected from a range of options
(N) A severe or urgent enforcement action
(O) Messages intended to promote products or services
Go to answers ⇩

🔡 Multiple Choice Questions:

1. What was the reason for the surge in new sign-ups for Netflix at the end of last year?
(a) Introduction of live events
(b) Lower prices for standard plan
(c) Increase in advertising revenue
(d) Crackdown on password-sharing

2. How many subscriptions did Netflix add in the last three months of 2023?
(a) Over 13.1 million
(b) Over 5 billion
(c) Over 6%
(d) Over $33.7 billion

3. What is one of the strategies Netflix is using to attract new viewers?
(a) Lowering prices for all plans
(b) Live events
(c) Removing advertisements
(d) Decreasing the number of programs

4. What deal did Netflix recently announce to expand its offerings?
(a) 10-year, $5 billion deal with Amazon
(b) 10-year, $5 billion deal with Adam Sandler
(c) 10-year, $5 billion deal with Beckham documentary
(d) 10-year, $5 billion deal with WWE Raw

5. How did the news of the surge in sign-ups affect Netflix’s shares?
(a) Increased by over 6% in after-hours trade
(b) Decreased by over 6% in after-hours trade
(c) Remained unchanged in after-hours trade
(d) Increased by over 13.1 million in after-hours trade

6. What was Netflix’s revenue in 2023?
(a) Over 6%
(b) Over 5 billion subscriptions
(c) Over $33.7 billion
(d) Over $5.4 billion

7. What did Netflix initially resist but has now embraced to generate more income per account?
(a) Raising prices
(b) Selling ads
(c) Lowering prices
(d) Removing advertisements

8. What contributed to Netflix’s success, as evidenced by its Oscar nominations?
(a) Crackdown on password-sharing
(b) Increase in advertising revenue
(c) Strong lineup of programs
(d) Lower prices for standard plan

Go to answers ⇩

🕵️ True or False Questions:

1. The streaming giant lost over 13.1 million subscriptions in the last three months of 2023, the lowest number for any quarter since 2020.
2. Netflix is experimenting with more live events to attract new audiences, including a 10-year, $5 billion deal to bring WWE Raw to its platform.
3. This unexpected growth comes after a decline in subscribers and profits earlier in the year.
4. Netflix has embraced selling ads as a strategy to generate more income per account.
5. Netflix experienced a decline in new sign-ups at the end of last year despite its crackdown on password-sharing.
6. Many new members opted for the company’s most expensive plan, even though it includes advertisements.
7. Netflix expressed doubt in its growth trajectory and announced plans to lower prices.
8. Despite concerns from analysts, Netflix added more new subscribers than expected in the last quarter, attributed to a strong lineup of programs and 18 Oscar nominations.
Go to answers ⇩

📝 Write a Summary:

Write a summary of this news article in two sentences.




Writing Questions:

Answer the following questions. Write as much as you can for each answer.

1. How did Netflix’s crackdown on password-sharing contribute to a surge in new sign-ups?
2. What is Netflix’s plan to increase revenue in addition to the crackdown on password-sharing?
3. Why did many new members opt for Netflix’s cheapest plan, even though it includes advertisements?
4. What other strategies is Netflix exploring to attract new viewers?
5. What factors contributed to Netflix’s success and increase in subscribers?

Answers

🤔✅ Comprehension Question Answers:

1. The reason behind Netflix experiencing a surge in new sign-ups at the end of last year was its crackdown on password-sharing.
2. Netflix added over 13.1 million subscriptions in the last three months of 2023.
3. Netflix plans to raise prices in response to its growth trajectory.
4. Despite the crackdown on password-sharing, many new members opted for the company’s cheapest plan, which includes advertisements.
5. Netflix is using live events, such as its recent deal to bring WWE Raw to its platform, to attract new audiences.
6. The deal that Netflix made to bring WWE Raw to its platform is worth $5 billion over 10 years.
7. Netflix initially resisted selling ads but has now embraced this strategy to generate more income per account.
8. The strong lineup of programs, including popular series like the Beckham documentary and Adam Sandler’s Leo, contributed to Netflix’s success and increase in sign-ups in the last quarter.
Go back to questions ⇧

🎧✍️✅ Listen and Fill in the Gaps Answers:

(1) number
(2) opted
(3) subscribers
(4) profits
(5) Other
(6) offerings
(7) embraced
(8) strategy
(9) lineup
(10) series
(11) increase
(12) trade
(13) surge
(14) exploring
(15) viewers
(16) programs
Go back to questions ⇧

📖💭✅ Vocabulary Meanings Answers:

1. surge
Answer: (D) A sudden powerful forward or upward movement

2. crackdown
Answer: (N) A severe or urgent enforcement action

3. trajectory
Answer: (F) The path or direction that something or someone moves along

4. opted
Answer: (M) Chose or selected from a range of options

5. advertisements
Answer: (O) Messages intended to promote products or services

6. decline
Answer: (C) A decrease or downward trend

7. strategies
Answer: (L) Plans or methods developed to achieve a goal

8. revenue
Answer: (J) Income generated from business activities

9. analysts
Answer: (A) Experts who analyze and provide insights on financial data

10. standout
Answer: (H) Exceptionally good or prominent

11. attributed
Answer: (B) Credited or ascribed a result to a particular cause

12. nominations
Answer: (E) Official recognitions of achievement, typically for artistic work

13. after-hours
Answer: (I) Trading that takes place after the official close of the stock market

14. profits
Answer: (G) Monetary gains after all expenses have been paid

15. evidenced
Answer: (K) Shown or proven by evidence
Go back to questions ⇧

🔡✅ Multiple Choice Answers:

1. What was the reason for the surge in new sign-ups for Netflix at the end of last year?
Answer: (d) Crackdown on password-sharing

2. How many subscriptions did Netflix add in the last three months of 2023?
Answer: (a) Over 13.1 million

3. What is one of the strategies Netflix is using to attract new viewers?
Answer: (b) Live events

4. What deal did Netflix recently announce to expand its offerings?
Answer: (d) 10-year, $5 billion deal with WWE Raw

5. How did the news of the surge in sign-ups affect Netflix’s shares?
Answer: (a) Increased by over 6% in after-hours trade

6. What was Netflix’s revenue in 2023?
Answer: (c) Over $33.7 billion

7. What did Netflix initially resist but has now embraced to generate more income per account?
Answer: (b) Selling ads

8. What contributed to Netflix’s success, as evidenced by its Oscar nominations?
Answer: (c) Strong lineup of programs
Go back to questions ⇧

🕵️✅ True or False Answers:

1. The streaming giant lost over 13.1 million subscriptions in the last three months of 2023, the lowest number for any quarter since 2020. (Answer: False)
2. Netflix is experimenting with more live events to attract new audiences, including a 10-year, $5 billion deal to bring WWE Raw to its platform. (Answer: True)
3. This unexpected growth comes after a decline in subscribers and profits earlier in the year. (Answer: True)
4. Netflix has embraced selling ads as a strategy to generate more income per account. (Answer: True)
5. Netflix experienced a decline in new sign-ups at the end of last year despite its crackdown on password-sharing. (Answer: False)
6. Many new members opted for the company’s most expensive plan, even though it includes advertisements. (Answer: False)
7. Netflix expressed doubt in its growth trajectory and announced plans to lower prices. (Answer: False)
8. Despite concerns from analysts, Netflix added more new subscribers than expected in the last quarter, attributed to a strong lineup of programs and 18 Oscar nominations. (Answer: True)
Go back to questions ⇧

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