Friday, November 29

Netflix warned harsh measures against password sharing: how it will directly affect users

Netflix calcula que hay alrededor de 100 millones de hogares en todo el mundo que usan la plataforma, pero no pagan una suscripción
Netflix estimates that there are around 100 millions of households around the world that use the platform, but do not pay a subscription

Photo: CHRIS DELMAS / Getty Images

Javier Zarain

A week after Netflix announced a loss of subscribers for the first time in a decade, the company has begun to consider new measures which include a global campaign against password sharing and resorting to the implementation of advertising.

The global streaming giant ended the first three months of the year with 200,000 less subscribers. Netflix, which currently has 700.6 million users, experienced record growth in demand in the early days of the pandemic, when people around the world were stuck at home and flocking to their screens to watch shows and movies.

But password sharing and stiff competition from other streaming platforms have made it difficult for Netflix to attract new viewers .

This is what viewers can look forward to in the future, in an attempt to the platform to increase subscribers and stop the loss of income:

A measure against the sharing of passwords

According to Netflix estimates, there are more than 100 million homes that use Netflix, but they do not pay for the services.

Netflix admitted that it allowed users to share their passwords because it got more people hooked on their platform. However, the launch of other streaming services has made it much more difficult for the company to grow its membership base.

Last month , Netflix started testing ways to make users in Chile, Costa Rica and Peru, who share passwords, pay a fee for additional members.

This model could be expanded to other countries, although it has not been detailed when these changes would be implemented.

Cheap service, but with advertising

Netflix co-founder Reed Hastings has long resisted endorsing the ads, but the company changed course on Tuesday.

“I have been against the complexity of advertising (…) But I’m a bigger fan of consumer choice. And allow consumers who would like to have a lower price and tolerate advertising to get what they they want makes a lot of sense,” he said last Tuesday.

The move to ads was greeted with skepticism by some Wall Street analysts, including Rich Greenfield, Media and Technology Partner and Analyst at LightShed Partners. He told NBC News that adding ads would likely result in less viewing time per user per day and ultimately

, in a higher user turnover.

Decrease investment in new content

To further boost revenue growth, Netflix said it would also could withdraw spending on your movies and TV shows.

“We are reducing part of the growth of our spending both in content and in spending without content,” Chief Financial Officer Spencer Neumann said in a recorded interview.

With $17,000 million dollars annually, Netflix currently spends more on content than any of its competitors, Greenfield pointed out.

You may also like:
1238880365– Retailers expect a record spend of $54,700 millions for Mother’s Day in the US, despite inflation
– Taco Bell’s famous Mexican pizza already has a date back on the menu: it has been out since 2020
– How Amazon seeks to solve the millions of returns from dissatisfied customers every year