Sharing accounts will change significantly in the future.
Netflix will start collecting additional fees from shared accounts. Adobe Stock / AOP
Netflix announced Earlier this week, it has lost large numbers of subscribers for the first time in a decade. During the first quarter, Netflix had 200,000 fewer subscribers than it forecast. The company lost 700,000 subscribers in March when it froze operations in Russia.
Netflix reports that it currently has 222 million subscribers worldwide. The number of subscribers rose sharply in the early days of the corona pandemic, but has since fallen.
In terms of subscriber numbers, Netflix will probably soon be more widespread with tools to eradicate sharing accounts. Many friends or family members use the same IDs, even if they do not live in the same household. As a result, Netflix will lose significant revenue.
Netflix has been rumored to introduce an additional charge for password sharing. In this case, the user who received the account IDs is assimilated to the main profile. Such an account could be used without violating Netflix’s terms – and cheaper than acquiring your own account. Parallel accounts have already been tested in Latin America.
Read more about the tested order template here.
In a letter to shareholders, Netflix said that about 100 million households use Netflix but do not pay for it. Netflix says it is aware of password sharing, but has looked through it with its fingers. However, as competition intensifies, the situation has changed.
Ads known
Founding member of Netflix Reed Hastings has opposed the introduction of advertising in the service, but now the direction is changing.
– Those who have followed Netflix know that I have opposed the complexity of advertising and am a big fan of simple subscription services, NBC reports that Hastings said in a recording.
– But as much as I am a fan of it, I am a bigger fan of consumer choices. It makes a lot of sense for consumers who want a cheaper price and tolerate advertising to get what they want.
In the future, therefore, ads may appear on Netflix when watching movies and series. The ads have already been questioned, and analysts have speculated that such activity could even reduce the time spent on the service and negatively impact the number of orders.
Netflix also announced plans to reduce spending on its films and series to increase revenue.