Netflix- One of the biggest streaming service has hinted to crack down on password sharing in households. The popularity of the American subscription streaming service is overwhelming.. And it has an option to share passwords among others up to five in number. However, this has led to a sharp fall in new subscribers. According to sources, for last three months, the number of falls in households using Netflix services reach almost 200,000 in number. Meanwhile, it faced tough competition from the competitors.
Rise in Prices
Another reason for losing subscriptions and not attracting new ones is the rise in prices in some countries. Meanwhile, it has left Russia amid war losing numerous subscribers. Additionally, the production company has warned shareholders for another two million subscribers are likely to leave in three months. The firm told shareholders after publishing its first-quarter results, and said, ‘’our revenue growth has slowed considerably.’’ Further added, ‘’ Our relatively high household penetration- when including the large number of households sharing accounts- combined with competition, is creating revenue growth headwinds.’’
Meanwhile, almost 100 million households use free Netflix sharing passwords. Boss Reed Hastings explains the practice of sharing passwords as ‘’ something you have to learn to live with,’’ adding that much of it ‘’legitimate’’ between family members.
It’s hard to attract new subscribers in some countries
Though, the firm has also accepted that password sharing has helped in getting more people to use Netflix. However, now it is hard to attract new subscribers from some countries. Mr. Hasting said, ‘’when we were growing fast, it wasn’t a high priority to work on (account sharing). And now we’re working super hard on it.’’
Currently, the firm is testing to curb password sharing in Latin America, however, the firm has hinted to roll out to other countries as well. Meanwhile, last month, it is suggested that people from Costa Rica, Chile and Peru must pay for adding user profiles outside of their household.