After Netflix announced the loss of subscribers for the first time in a decade, the Co-CEO Reed Hastings came forward with his new decision to overcome the setback he faced recently. The streaming platform in its latest statement announced that the company is soon going to introduce an ad-supported tier which would be a big change for the company. In a recent decision, the company said that the current password sharing option would soon be taken back in order to increase the subscriber’s number.
Netflix had a prediction of over 2.5 million subscribers but the report came recently showed a decline in its users, and it was around 200000 subscribers only. The company lost 700,000 subscribers in early March after its decision to suspend service in Russia after the country invaded Ukraine.
Netflix password sharing
Netflix password sharing business is coming to an end as the company found a decline in its users. Those customers who already joined Netflix have shared passwords some or the other way with not just their family members but also friends and their friends and others who they probably haven’t even met before. This has resulted in the number of new customers not joining the app with another account. For the same reason, the company’s share price plummeted to an all-time low.
“Although sharing the password helped more users to join the app, there occurred a dip in the number of subscribers and customers with usernames and passwords,” said the Co-CEO. Netflix has long been working to crack down on the password-sharing business. Last month, the streaming platform announced that users in Chile, Costa Rica, and Peru would have to pay extra to share accounts between families. According to the company, this strategy would soon be planned for other countries also to regain its subscribers.
Moreover, Netflix is going to bring ads support to the platform soon to surpass the subscriber dip, and by bringing this feature, it would help customers with a minimal subscription charge. At present, the app is charging a premium charge without any ad support. However, with the implementation of ads, the charge will be reduced, Reed noted.
The CEO also said that the company is considering introducing cheaper plans in the coming days. The company has not yet introduced any pocket-friendly plans for the users, but now it believes that with the introduction of new plans, more subscribers will be attracted. However, the decision to take back the password-sharing business will certainly be a setback to the current account users.