Netflix is all set to enforce stricter password-sharing rules ‘more broadly’ towards the end of the first quarter of the year 2023. India might be one of the impacted markets.
By Divyanshi Sharma: We all know of at least one person who has never paid for a single streaming service yet, has access to all. All thanks to password sharing. Recognising the same trend and trying to bring it to a halt, Netflix is all set to enforce stricter password-sharing rules ‘more broadly’ towards the end of the first quarter of the year 2023. Moreover, people who are sharing their Netflix password with members outside of their households will have the option to pay some extra amount to continue doing so.
In their earnings report, Netflix said, “We expect to roll out paid sharing more broadly later in Q1’23. We anticipate that this will result in a very different quarterly paid net adds pattern in 2023, with paid net adds likely to be greater in Q2’23 than in Q1’23.”
Even though Netflix hasn’t really mentioned the markets for which it is set to roll out the ‘paid sharing’ option, it is safe to assume that India might be one of them.
The ‘cancel reaction’
The company also expects a ‘cancel reaction’ from the market but is ready to take the plunge for long-term growth.
It says, “From our experience in Latin America, we expect some cancel reaction in each market when we roll out paid sharing, which impacts near-term member growth. But as borrower households begin to activate their own standalone accounts and extra member accounts are added, we expect to see improved overall revenue, which is our goal with all plan and pricing changes.”
Reflecting upon 2022
Last year, Netflix rolled out its new password sharing policy in countries like Argentina, the Dominican Republic, Honduras, and El Salvador. Subscribers had to pay an additional $2.99 per month to add additional homes to their accounts.
Meanwhile, the year 2022 wasn’t exactly a good one for Netflix as the company lost subscribers and reportedly failed to meet its target of acquiring new subscribers. The company had also fired hundreds of employees to reduce costs.
Reflecting upon the year 2022, the company says, “2022 was a tough year, with a bumpy start but a brighter finish. We believe we have a clear path to reaccelerate our revenue growth: continuing to improve all aspects of Netflix, launching paid sharing and building our ads offering.”