To enhance earnings, Netflix ended password sharing, hiked costs, and launched a tier with ads.
The firm has been regularly rolling out new measures to determine and stop password sharing.
Netflix co-CEO Ted Sarandos lately expressed satisfaction with the corporate’s progress in curbing password sharing within the United States. During a convention at UBS Global Media and Communications, Sarandos said that the corporate is “completely satisfied” with the tempo of its password-sharing crackdown efforts.
“We’re completely satisfied with the pace of it It’s been very good to take it slow and deliberate, and we’re rolling it out in a very thoughtful way,” Sarandos mentioned.
Netflix started its password-sharing crackdown within the United States earlier this 12 months. Password sharing restrictions then expanded to Canada, New Zealand, and a few European international locations in February 2023, earlier than coming to the US, UK, and different international locations in May 2023.
The firm has been regularly rolling out new measures to determine and stop password sharing, akin to requiring customers to confirm their accounts with a cellphone quantity or e mail handle.
According to Reuters, Netflix allowed password sharing to proliferate for greater than a decade earlier than deciding to crack down on it. The change got here as a result of within the first quarter of 2022, Netflix misplaced subscribers for the primary time in 10 years and noticed a pointy drop in income.
To enhance earnings, Netflix ended password sharing, hiked costs, and launched a tier with ads.
According to the streaming large , an estimated 222 million paying households had been sharing with an extra 100 million households that weren’t being monetized.
“We’re very mindful of the fact that people care a lot about Netflix,” Sarandos mentioned. “We want to make sure that we’re doing this in a way that’s respectful of our customers and that’s going to be effective in the long run.”
Netflix has not but launched any knowledge on how its password-sharing crackdown has impacted the corporate’s backside line. However, Sarandos has mentioned that he’s assured that the measures will likely be profitable in the long term.
“We think it’s the right thing to do,” Sarandos mentioned. “It’s going to help us build a stronger, more sustainable business for the long term.”
