price increase for those who share accounts
Streaming service Netflix has seen the number of subscribers drop significantly in the past quarter. Netflix will take action against account sharing.
Netflix on Q1 2022
The first quarter of 2022 has not been all rosy for streaming service Netflix. The film and series provider has announced that the number of paying subscribers has fallen by 200,000, while a growth of 2.5 million customers was expected. This news also caused the share of Netflix on the stock market to plummet. Netflix still has the most subscribers of all streaming services; 221.6 million. It is the first drop since 2011.
Netflix has announced that it is looking at a cheaper subscription, where users will see advertisements. The service previously announced that this is a possibility, and it is expected that in the long term experiments will be conducted with subscriptions with advertisements.
Account sharing is done en masse. 100 million people piggyback on another user’s account; such as a friend, relative or colleague. Netflix CEO Reed Hastings indicated that money must also be made from them. To make this possible, the price is increased for those who share their account. Netflix can find out through the IP addresses and device information. A test has been running in various countries (Chile, Costa Rica and Peru) for several weeks to tackle this problem.
It is not yet known when it will be the turn of Europe and therefore the Netherlands and Belgium with the price increase. It is also not known how much the price increase will be. Through the price increase, the owner should be deterred from sharing the account, or should ensure that income comes in to Netflix in this way.
Last week it was announced that Netflix is coming with the double thumb.
