With 1 million fewer subscribers, Netflix still intends to crack down on password sharing.
The year 2022 has not been kind to Netflix. The video streaming business reported losing 200K paying members back in Q1 2022. The result was a major setback for the business, which was compelled to make certain adjustments to improve the product’s attractiveness to consumers.
Now that the updated statistics are available, it has been stated that the site lost about 1 million subscribers (970K). However, contrary to expectations, the site did not lose 2 million subscribers. Launching a free-tier plan that is ad-supported is one of the adjustments the firm intends to make. In 2023, the product will be made available globally after previously being introduced in Kenya.
Additionally, Netflix intends to raise plan costs for those who exchange passwords.
A few nations in Latin America, it has already begun to do the same thing. According to the firm, this will make password sharing less common. By the way, password sharing allows more than 100 million homes to access Netflix for free.
Despite the significant loss of 1 million users, Netflix was able to increase its income by 8.6 percent as a result of an increase in the average paid membership.
In spite of this, Netflix anticipates regaining the lost subscribers in the upcoming quarter if the economy improves.
Households have been badly struck by the pandemic’s difficulties, which is in part why some of them have been compelled to cut back on services they might have survived without. Additionally, there has been no positive overall impact on the foreign exchange.
