After years of encouraging its customers to share their accounts, Netflix recently decided to back down and financially sanction its users who will pass on their passwords to their loved ones. in question? The leaders recently explained this on the official website: “Over 100 million households share their accounts, fueling our ability to invest in creating great stories with the highest quality series and movies,
An excuse quickly criticized by internet users, who did not hesitate to judge these leaders as hypocrites when they were about to throw money out the window by producing Big Turnip with XXL budgets, in which the actors was heavily paid (blow) red notice), and doing so in a way that could cost the platform dearly.
Account Sharing Ended? Netflix… is losing subscribers
As we recently learned, in order to recover money from people who share their accounts, Netflix will raise the prices of subscriptions (+€5.99 on average) to people whose generosity is blown away by the streaming site’s technology. A method that has not yet been implemented in France, but which has already been launched in an experimental phase on the part of our neighbors in Spain. However, where Netflix hoped to salvage its coffers in this way, it may quickly be disappointed.
According to a Bloomberg article supported by research by Kantar, The platform may have lost 1 million users only during the first three months of the year 2023, knowing that this sanction was initiated during the month of February. Two-thirds of these underage users were those who were using someone else’s password.
No worries, will they come back after creating their account? This is precisely what the leader hopes, who assured Bloomberg that the impact will be felt in the long run:In Canada, which we consider a reliable indicator for the USA, our customers are now higher than before the launch of this payment option and our revenue has grown faster than in the USA.,
faster than expected decline
Yes, but that was without taking into account two important things: inflation and the economic crisis looming over Europe today. And while Spain is barely recovering from the last financial crisis, locals are no longer willing to go back to paying 100%, especially at such high prices (the most interesting subscription costs €17.99/month). Bloomberg also points to this Account closure requests tripled in a quarterWhile one in ten users (10%) have already indicated that they In return will close its account in the second quarter of 2023A percentage that is much higher than normal.
,It was expected that subscribers would leave during this process, but losing 1 million users in just a month and a half has serious implications for Netflix and should make it think about the interest of continuing this operation worldwide.Dominik Sannebo (Director of Analysis at Kantar) reveals. Monitoring future quarters to see customer reaction (whether they re-subscribe or not) will be key to Netflix’s strategy.,
We cross our fingers that our neighbors don’t subscribe again, which just might inspire Netflix to abandon this terrible idea.
