Netflix says 100 million accounts share passwords, but not for long
Your time leeching a Netflix account from your friend could be over soon.
Netflix’s latest earnings report just came out, and it’s not as impressive as it has been in the past. The platform lost around 200,000 subscribers in the first quarter of 2022. And Netflix is also losing money on the 100 million accounts sharing their passwords with others.
In its earnings report, Netflix cited four reasons why its growth has slowed in the first part of 2022. The first claims that the adoption of broadband internet, smart TVs, and on-demand entertainment has slowed down.
Then there are “macro factors,” like the Russian invasion of Ukraine and inflation causing a slow in growth for Netflix. The company also says that competition has become much stiffer, with many people opting for other streaming services, like Disney+ or HBO Max, over Netflix.
And finally, there’s account sharing. In addition to its 220 million paying subscribers, Netflix estimates that about 100 million users are sharing their accounts with additional households.
“Account sharing as a percentage of our paying membership hasn’t changed much over the years, but, coupled with the first factor, means it’s harder to grow membership in many markets — an issue that was obscured by our COVID growth,” reads the report.
Netflix says it’s working on ways to monetize the rampant password sharing that goes on. It has already begun a pilot program of sorts in Peru, Costa Rica, and Chile. The program lets subscribers pay a little extra each month for the ability to share their accounts with another household.
Of course, this report didn’t go into details about the company’s plans to fix this problem. But it certainly looks like the times of sharing your Netflix account with your friends will be coming to an end soon.
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