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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 got a lot of new people signing up at the end of last year because they started cracking down on sharing passwords. They added over 13.1 million new subscriptions in the last three months of 2023, which is the most they’ve ever had in one quarter since 2020. Even though they were trying to stop password-sharing, a lot of the new members chose the cheapest plan that has ads. This was a surprise because earlier in the year, Netflix was losing subscribers and not making as much money. So they had to come up with new ways to get more people to watch and make more money.

Besides stopping password-sharing, Netflix is also trying out more live events to get new people interested. They just made a deal for $5 billion to bring WWE Raw, a really popular wrestling show, to their platform for the next 10 years. Other streaming companies like Amazon are doing similar things to offer more stuff to watch. Netflix used to not want to have ads, but now they’re okay with it because it helps them make more money. They charge less for the plan with ads compared to the one without. But they don’t think ads will make a big difference in their growth this year.

Even though some people thought Netflix wouldn’t get as many new subscribers without a really popular show, they actually got more than expected last quarter. They said it was because they had a lot of good shows, like a documentary about Beckham and a movie with Adam Sandler. They even got 18 Oscar nominations, which is a big deal. When people heard about all the new sign-ups, the price of Netflix’s shares went up by 6% after the stock market closed. Overall, Netflix made over $33.7 billion in 2023, which is 6% more than the year before. They made $5.4 billion in profits.

So, Netflix got a lot of new people signing up because they stopped sharing passwords. They’re doing well and plan to raise prices. Even though they stopped password-sharing, a lot of new members chose the cheapest plan with ads. Netflix is also trying out live events to get more people interested. They did really well last quarter because they had good shows and got Oscar nominations.

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

🎧 Listen:

Slow

Normal

Fast

📖 Vocabulary:

1subscriptionsSign-ups or memberships for a service
2crackingBreaking or breaking down something
3revenueMoney that a company receives from its business activities
4implementedPut into action or started using something
5platformA place or service used for the public exchange of information or entertainment
6documentaryA non-fiction film that provides a factual report on a particular subject
7nominationsOfficial suggestions for an award
8sharesPieces of ownership in a company
9profitsMoney that is earned by a business after all costs and expenses are paid
10quarterA period of three months in a financial calendar
11anticipatedExpected or predicted
12subscribersPeople who sign up to use a service
13strategyA plan or method for achieving a goal
14contentThe material or information provided by a service like television or the internet
15acquisitionThe act of getting something, like rights or property

Group or Classroom Activities

Warm-up Activities:

– News Summary
Instructions: Divide the class into small groups. Give each group a copy of the article. Instruct them to read the article and summarize the main points in 3-4 sentences. After a few minutes, have each group share their summaries with the class.

– Opinion Poll
Instructions: Ask the students to form pairs. Give each pair a set of questions related to the article. Instruct them to take turns asking and answering the questions, and to discuss their opinions on the topics. After a few minutes, have a few pairs share their opinions with the class.

– Vocabulary Pictionary
Instructions: Write down 10-15 key words from the article on separate pieces of paper. Put the papers in a hat or container. Divide the class into two teams. One member from each team will take turns picking a word from the container and drawing it on the board, while their team tries to guess the word. The team with the most correct guesses wins.

– Headline Creation
Instructions: Divide the class into small groups. Assign each group a different headline related to the article. Instruct the groups to create a news headline that captures the main idea of the article. After a few minutes, have each group present their headline and explain why they chose it.

– Think-Pair-Share
Instructions: Pose a discussion question related to the article to the whole class, such as “Do you think Netflix’s strategy of stopping password-sharing is effective? Why or why not?” Give the students a few minutes to individually think about their response. Then, have them pair up with a partner and discuss their thoughts. Finally, ask a few pairs to share their opinions with the class.

🤔 Comprehension Questions:

1. Why did Netflix get a lot of new subscribers at the end of last year?
2. How many new subscriptions did Netflix add in the last three months of 2023?
3. What surprised Netflix about the new members who signed up?
4. What is Netflix doing to get new people interested in their platform?
5. What deal did Netflix make to bring a popular wrestling show to their platform?
6. Why is Netflix now okay with having ads?
7. What shows and movies did Netflix have that helped them get more subscribers?
8. How much money did Netflix make in 2023?
Go to answers ⇩

🎧✍️ Listen and Fill in the Gaps:

Netflix got a lot of new people signing up at the end of last year because they started cracking down on (1)______ (2)______. They added over 13.1 million new subscriptions in the last three months of 2023, which is the most they’ve ever had in one quarter since 2020. Even though they were trying to stop password-sharing, a lot of the new members chose the (3)______ plan that has ads. This was a surprise because earlier in the year, Netflix was losing subscribers and not (4)______ as much money. So they had to come up with new ways to get more people to watch and make more money.

Besides stopping password-sharing, Netflix is also trying out more live events to get new people (5)______. They just made a deal for $5 billion to (6)______ WWE Raw, a really popular wrestling show, to their platform for the next 10 years. Other (7)______ companies like Amazon are doing (8)______ things to offer more stuff to watch. Netflix used to not want to have ads, but now they’re okay with it because it helps them make more money. They charge less for the plan with ads compared to the one without. But they don’t think ads will make a big difference in their (9)______ this year.

Even though some (10)______ thought Netflix wouldn’t get as many new subscribers without a really popular show, they actually got more than expected last quarter. They said it was because they had a lot of good shows, like a documentary about (11)______ and a movie with Adam (12)______. They even got 18 Oscar nominations, which is a big deal. When people heard about all the new sign-ups, the price of Netflix’s shares went up by 6% after the stock market closed. Overall, (13)______ made over $33.7 billion in 2023, which is 6% more than the year before. They made $5.4 billion in profits.

So, Netflix got a lot of new people signing up because they stopped sharing passwords. They’re doing well and plan to raise prices. Even though they stopped password-sharing, a lot of new members (14)______ the cheapest plan with ads. Netflix is also (15)______ out live events to get more people interested. They did really well last quarter because they had good (16)______ and got Oscar nominations.
Go to answers ⇩

💬 Discussion Questions:

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

1. What is password-sharing and why do you think Netflix wanted to stop it?
2. How do you feel about Netflix adding ads to their cheapest plan? Why or why not?
3. Do you like watching live events? Why or why not?
4. Have you ever watched a wrestling show? How did you feel about it?
5. What do you think about streaming companies like Netflix and Amazon adding more content to watch? Do you think it’s a good idea? Why or why not?
6. How important is it for a streaming platform to have popular shows? Why?
7. Have you ever watched a documentary? If so, what was it about and did you enjoy it?
8. How do you think getting Oscar nominations helps a streaming platform like Netflix?
9. Do you think the price of Netflix’s shares going up is a good thing? Why or why not?
10. How do you feel about Netflix making over $33.7 billion in one year? Do you think it’s fair? Why or why not?
11. Have you ever subscribed to a streaming platform? Which one and why did you choose it?
12. How do you think Netflix can continue to grow in the future?
13. Do you think Netflix raising prices will affect their number of subscribers? Why or why not?
14. How important is it for a streaming platform to have a variety of content? Why?
15. What other types of live events do you think Netflix could offer to attract more people? Why?

Individual Activities

📖💭 Vocabulary Meanings:

Match each word to its meaning.

Words:
1. subscriptions
2. cracking
3. revenue
4. implemented
5. platform
6. documentary
7. nominations
8. shares
9. profits
10. quarter
11. anticipated
12. subscribers
13. strategy
14. content
15. acquisition

Meanings:
(A) A place or service used for the public exchange of information or entertainment
(B) The act of getting something, like rights or property
(C) A period of three months in a financial calendar
(D) Put into action or started using something
(E) Pieces of ownership in a company
(F) Money that a company receives from its business activities
(G) A plan or method for achieving a goal
(H) Money that is earned by a business after all costs and expenses are paid
(I) Official suggestions for an award
(J) Expected or predicted
(K) Breaking or breaking down something
(L) People who sign up to use a service
(M) A non-fiction film that provides a factual report on a particular subject
(N) Sign-ups or memberships for a service
(O) The material or information provided by a service like television or the internet
Go to answers ⇩

🔡 Multiple Choice Questions:

1. How many new subscriptions did Netflix add in the last three months of 2023?
(a) Over 13.1 million
(b) Over 10 million
(c) Over 5 million
(d) Over 20 million

2. What was surprising about the new members who signed up for Netflix?
(a) They chose the most expensive plan without ads
(b) They didn’t watch any shows or movies
(c) They chose the cheapest plan with ads
(d) They cancelled their subscriptions after signing up

3. Why did Netflix decide to include ads in their platform?
(a) To provide a better viewing experience
(b) To make more money
(c) To compete with other streaming companies
(d) To annoy their subscribers

4. How much money did Netflix spend to bring WWE Raw to their platform?
(a) $10 billion
(b) $1 billion
(c) $500 million
(d) $5 billion

5. What did Netflix do to attract more people to their platform besides stopping password-sharing?
(a) They lowered their prices
(b) They added more live events
(c) They removed all ads
(d) They created their own wrestling show

6. How did people react when they heard about all the new sign-ups for Netflix?
(a) The price of Netflix’s shares went down
(b) People cancelled their Netflix subscriptions
(c) The price of Netflix’s shares went up
(d) People started sharing passwords again

7. How much money did Netflix make in 2023?
(a) Over $50 billion
(b) Over $20 billion
(c) Over $10 billion
(d) Over $33.7 billion

8. How much profit did Netflix make in 2023?
(a) $5.4 billion
(b) $1 billion
(c) $10 billion
(d) $500 million

Go to answers ⇩

🕵️ True or False Questions:

1. Netflix believes that ads will significantly impact their growth this year.
2. In addition to cracking down on password-sharing, Netflix is experimenting with hosting more live events to attract new users.
3. Netflix recently secured a $5 billion deal to bring the popular wrestling show WWE Raw to their platform for the next decade.
4. Most of the new members who signed up chose the most expensive plan without ads, which was expected for Netflix.
5. Netflix was gaining subscribers and making a lot of money earlier in the year, so they didn’t have to find new ways to attract viewers and increase revenue.
6. Netflix gained over 13.1 million new subscriptions in the last three months of 2023, which is their highest quarterly increase since 2020.
7. Netflix used to be against having ads, but they are now accepting them as it helps them generate more income. The ad-supported plan is cheaper than the one without ads.
8. Despite assurances that Netflix would easily attract new subscribers without a major hit show, they fell short of expectations last quarter due to the failure of shows like a documentary about Beckham and a movie featuring Adam Sandler. They only received 5 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. Why did Netflix get a lot of new subscribers at the end of last year?
2. What is one way Netflix is trying to get more people interested in their platform?
3. How did Netflix make more money even though they were losing subscribers earlier in the year?
4. What are some examples of the good shows that helped Netflix get more subscribers last quarter?
5. Why did the price of Netflix’s shares go up after the stock market closed?

Answers

🤔✅ Comprehension Question Answers:

1. Why did Netflix get a lot of new subscribers at the end of last year?
Netflix got a lot of new subscribers at the end of last year because they started cracking down on sharing passwords.

2. How many new subscriptions did Netflix add in the last three months of 2023?
Netflix added over 13.1 million new subscriptions in the last three months of 2023.

3. What surprised Netflix about the new members who signed up?
Netflix was surprised that a lot of the new members chose the cheapest plan with ads.

4. What is Netflix doing to get new people interested in their platform?
Netflix is trying out more live events to get new people interested in their platform.

5. What deal did Netflix make to bring a popular wrestling show to their platform?
Netflix made a deal for $5 billion to bring WWE Raw, a popular wrestling show, to their platform for the next 10 years.

6. Why is Netflix now okay with having ads?
Netflix is now okay with having ads because it helps them make more money. They charge less for the plan with ads compared to the one without.

7. What shows and movies did Netflix have that helped them get more subscribers?
Netflix had a documentary about Beckham and a movie with Adam Sandler that helped them get more subscribers. They also got 18 Oscar nominations.

8. How much money did Netflix make in 2023?
Netflix made over $33.7 billion in 2023.
Go back to questions ⇧

🎧✍️✅ Listen and Fill in the Gaps Answers:

(1) sharing
(2) passwords
(3) cheapest
(4) making
(5) interested
(6) bring
(7) streaming
(8) similar
(9) growth
(10) people
(11) Beckham
(12) Sandler
(13) Netflix
(14) chose
(15) trying
(16) shows
Go back to questions ⇧

📖💭✅ Vocabulary Meanings Answers:

1. subscriptions
Answer: (N) Sign-ups or memberships for a service

2. cracking
Answer: (K) Breaking or breaking down something

3. revenue
Answer: (F) Money that a company receives from its business activities

4. implemented
Answer: (D) Put into action or started using something

5. platform
Answer: (A) A place or service used for the public exchange of information or entertainment

6. documentary
Answer: (M) A non-fiction film that provides a factual report on a particular subject

7. nominations
Answer: (I) Official suggestions for an award

8. shares
Answer: (E) Pieces of ownership in a company

9. profits
Answer: (H) Money that is earned by a business after all costs and expenses are paid

10. quarter
Answer: (C) A period of three months in a financial calendar

11. anticipated
Answer: (J) Expected or predicted

12. subscribers
Answer: (L) People who sign up to use a service

13. strategy
Answer: (G) A plan or method for achieving a goal

14. content
Answer: (O) The material or information provided by a service like television or the internet

15. acquisition
Answer: (B) The act of getting something, like rights or property
Go back to questions ⇧

🔡✅ Multiple Choice Answers:

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

2. What was surprising about the new members who signed up for Netflix?
Answer: (c) They chose the cheapest plan with ads

3. Why did Netflix decide to include ads in their platform?
Answer: (b) To make more money

4. How much money did Netflix spend to bring WWE Raw to their platform?
Answer: (d) $5 billion

5. What did Netflix do to attract more people to their platform besides stopping password-sharing?
Answer: (b) They added more live events

6. How did people react when they heard about all the new sign-ups for Netflix?
Answer: (c) The price of Netflix’s shares went up

7. How much money did Netflix make in 2023?
Answer: (d) Over $33.7 billion

8. How much profit did Netflix make in 2023?
Answer: (a) $5.4 billion
Go back to questions ⇧

🕵️✅ True or False Answers:

1. Netflix believes that ads will significantly impact their growth this year. (Answer: False)
2. In addition to cracking down on password-sharing, Netflix is experimenting with hosting more live events to attract new users. (Answer: True)
3. Netflix recently secured a $5 billion deal to bring the popular wrestling show WWE Raw to their platform for the next decade. (Answer: True)
4. Most of the new members who signed up chose the most expensive plan without ads, which was expected for Netflix. (Answer: False)
5. Netflix was gaining subscribers and making a lot of money earlier in the year, so they didn’t have to find new ways to attract viewers and increase revenue. (Answer: False)
6. Netflix gained over 13.1 million new subscriptions in the last three months of 2023, which is their highest quarterly increase since 2020. (Answer: True)
7. Netflix used to be against having ads, but they are now accepting them as it helps them generate more income. The ad-supported plan is cheaper than the one without ads. (Answer: True)
8. Despite assurances that Netflix would easily attract new subscribers without a major hit show, they fell short of expectations last quarter due to the failure of shows like a documentary about Beckham and a movie featuring Adam Sandler. They only received 5 Oscar nominations. (Answer: False)
Go back to questions ⇧

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