Netflix has had a tough last quarter, and it can be tough. The popular video streaming platform has lost 200,000 subscribers in the first quarter of 2022, which is the first time for Netflix in 10 years. To protect its user base from further declines, Netflix is open to the idea of ad-supported subscription plans, and will further plan to limit password sharing. Here's a look at the details.
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In its latest Q1 earnings report, Netflix has revealed that over 100 million users are sharing their Netflix accounts and this password sharing problem is one of the reasons for the decline in its user base. To address this, Netflix will now put its latest test into full force soon.
If you've been following along, this test introduced an add-on option for people to add more users to their subscription by paying extra. The feature, which is currently available to users in Chile, Costa Rica and Peru, is a way for Netflix to crack down on password sharing and gain more subscribers, given that those who use Netflix for free aren't really subscribers. The feature will reach more markets in a year.
In the report, Netflix says, "There's a wide range of engagement in sharing households from high to occasional viewing. So while we won't be able to monetize everything right now, we think there's a big opportunity on the cards and medium term.”
