Netflix ‘completely satisfied’ with strategy to ban password sharing

Netflix confirms success of strategy to eliminate shared passwords and increase prices!

Netflix’s changes were in the company’s favor

After facing the challenge of being The first platform to take the risk of banning shared passwordsNetflix assumes this is the best decision. According to the latest statements made by Netflix CEO Ted Sarandos at the UBS Global Communications and Media Conference, It became Netflix “I am completely satisfied” With users’ responses.

The streaming company has begun eliminating password sharing in many Latin American countries in 2022. Password sharing restrictions were later expanded to Canada, New Zealand, and some European countries in February 2023; then it reached the United States, the United Kingdom, and other countries in May 2023. This strategy allowed him to gauge the customer’s reaction.

Ending shared passwords was Netflix’s best decision

Netflix decided to eliminate shared passwords in the first quarter of 2022, when it lost subscribers for the first time in 10 years and experienced a sharp decline in revenues. To reverse this situation Netflix ends password sharingincreased prices and launched an ad-supported tier.

According to Netflix, An estimated 222 million paying households are shared with an additional 100 million non-paying households. Netflix said it has seen strong growth in subscribers in countries where password sharing is restricted.

Revenue increased in all regions where paid sharing was implemented and ultimately registrations exceeded cancellations. Netflix gained 8.8 million new subscribers in the third quarter of 2023, up from 2.4 million new subscribers in the third quarter of 2022, and its revenue increased by $64 million.

Regarding the current situation, Sarandos said:

“The Netflix account is intended to be shared by people living together in the same household,” the Netflix website states. “People who are not at home will need to use their own accounts to watch Netflix.”

In addition to eliminating password sharing, Netflix increased the price of its tariffs. The first market affected by this change was the United States. Additionally, the platform no longer the Basic plan to new subscribers in that market.

Months ago, Netflix also stopped offering the Basic plan ad-free in Spain and other countries, leaving the Standard plan as a cheaper option at 12.99 euros.

However, looking at the current numbers, Netflix made the right decisions. More precisely, they were imitated by their competitors. For example, Disney began banning password sharing between locations starting in November.

Source: i Padizate

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