Netflix falls as benefits from password-sharing crackdown to take time

FILE PHOTO: Smartphone with Netflix logo is placed on a keyboard in this illustration taken April 19, 2022. REUTERS/Dado Ruvic/

(Reuters) -Shares of Netflix tumbled more than 8% on Thursday after the video-streaming pioneer's lackluster revenue rise sparked concerns of a longer road to growth from its new initiatives.

The company added nearly 6 million subscribers in the second quarter - almost three times above Wall Street's expectations - thanks to a crackdown on password sharing and the introduction of a cheaper subscription tier that is bundled with advertising.