More than 100 million households are sharing accounts freely, Netflix is ​​preparing “martial law”, charging extra fees for customers who use it – LLODO


Sharing accounts in the same household can be considered a unique feature, even the identity of Netflix, the world’s largest streaming platform today. However, it is this feature that is causing them headaches, when customers constantly share their accounts with people outside their family, such as colleagues, friends, or even… strangers. , to reduce the cost per month.

According to Netflix’s Q1/2022 financial report, more than 100 million households worldwide are sharing accounts with others. In other words, a lot of people are using a streaming service at a cheaper price, even for free, which is completely against Netflix’s policies.

More than 100 million households are sharing accounts freely, Netflix is ​​preparing

Once the identity of Netflix, now the account sharing feature is seriously affecting the company’s revenue.

Netflix also said that over the years, it has actively allowed account sharing to happen freely, with less control, with the aim of reaching and attracting more customers. However, with the rise of many big players like Disney, Warner Bros. Discovery, Paramount Global, NBCUniversal or Apple TV+, Netflix must act if they do not want to lose their throne.

The number of households sharing accounts is quite high, combined with the current level of competition in the market, causing our revenue growth to show signs of slowing down.,” said Netflix, “Our premium account sharing service hasn’t changed much in the past few years, but for the above reasons, it’s becoming more and more difficult for us to reach customers in new markets.“.

Besides, the first quarter of this year was also a milestone to forget for Netflix, as they lost about 200,000 paid subscribers, marking the first time “slope” in more than 10 years. But that’s just the beginning. According to the company’s estimates, they could lose up to 2 million accounts in the next 3 months.

More than 100 million households are sharing accounts freely, Netflix is ​​preparing

For the first time in a decade, Netflix’s user base plummeted.

In 2016, Netflix co-founder Reed Hastings said: “We have no plans to change our account sharing. This is something that you have to adapt to in life, such as sharing passwords for your partner, for your children to use. Besides, our business situation is still very good with this policy“.

Netflix has built its brand into being user-friendly over the years, and the account sharing feature has been a big help in maintaining that image. The company representative confirmed: “Sharing can attract more customers and accelerate our growth. And we also always create the best conditions to make this easier, such as the ability to create separate profiles in the same account, or stream movies at the same time on many different screens.“.

More than 100 million households are sharing accounts freely, Netflix is ​​preparing

Netflix’s account sharing feature hasn’t changed much in the past few years, but the numbers in the latest financial report may make them rethink.

However, times have changed, and the numbers in the latest financial report probably won’t allow Netflix to continue being so user-friendly. Earlier this year, they started a trial of charging extra fees to people who “check out” someone else’s account in Chile, Costa Rica, and Peru (you can learn more here).

Netflix management said that in the near future, possibly as early as 2023, they will apply this method to many other countries, forcing non-household users to pay a small part of the monthly fee. .

According to CNBC


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