Netflix has started a mass crackdown on password sharing after reporting a loss of 200,000 subscribers in the first quarter of 2022.
This is the first time that the streamer has reported a loss in subscribers in 10 years.
Along with factors such as the uptake of connected TVs, the adoption of on-demand entertainment, and data cost, the platform cited password sharing as a major factor in a letter to its shareholders.
“In addition to our 222m paying households, we estimate that Netflix is being shared with over 100m additional households, including over 30m in the UCAN region.
“Account sharing as a percentage of our paying membership hasn’t changed much over the years, but, coupled with the first factor (uptake of connected TVs, the adoption of on-demand entertainment, and data cost), means it’s harder to grow membership in many markets – an issue that was obscured by our COVID growth,” It stated in the letter.
Tests are already being conducted in Chile, Costa Rica and Peru, where a new program has been rolled out. It allows households to add up to two extra member accounts for $2-$3 per month each.
With the loss of subscribers now in the headlines, the widespread rollout of this program is imminent. The platform will also be optimistic that the release of highly-anticipated shows, such as Stranger Things season 4, will attract subscribers.