The decision to stop password sharing is paying dividends for Netflix with the US streaming giant adding 9.3 million new subscribers resulting in a profit surge.

Netflix’s operating income climbed 54% with shareholders relishing the move as revenues climbed to US$2.6bn, up from US $1.7bn a year ago.

All up Netflix subscribers are now 269 million, up 16% during the past 12 months.

The bad news is that as of next year Netflix will stop disclosing its subscriber a move that is set to upset investors and analysts.Did Facebook grant Netflix access to DMs?

The Company claims that they are shifting its focus to engagement — the amount of time its subscribers spend on the service — and developing new sources of revenue including advertising.

“Memberships are just one component of our growth,” a recent letter to shareholders claimed.

Netflix shares fell 2.4 per cent in after-hours trading.

Paolo Pescatore, an analyst at PP Foresight claims “No matter the company’s attempt to switch focus from subscribers to financials, net [subscriber] adds is the key metric everyone wants to see,” said .

“The movement to no longer disclose quarterly subscriptions from next year will not go down well.”

But Pescatore added that the latest results showed there was still room for growth from its password crackdown and push into advertising. Netflix said memberships to its advertising-supported tier rose 65 per cent from the previous quarter.

Its shares have risen 30 per cent this year, significantly outperforming the broader market. Netflix said it generated strong engagement in the first quarter from subscribers in markets such as Australia.

Other standouts included the drama series Griselda with 66.4mn views and 3 Body Problem with about 40mn.

Netflix said it expected revenue to grow between 13-15 per cent for the full year.