Yesterday we reported on how Netflix recorded a drop in users for the first time in its history. At first, you would think that some innocent number is in question, yet Netflix is in question, and it is the biggest streaming platform? If you thought that you were mistaken, it is a drop off as many as 200,000 subscribers worldwide, which caused a share price drop of 35% after this news was published.
Predictions for the future are no better either, the company expects to lose 2 million subscribers in the second quarter of this year, so imagine only then a drop in stock prices…
However, these negative numbers do not seem to affect the Netflix management too much, and they continue to limit the practice of sharing passwords between users (as Netflix continues to “attack” users who share their passwords). This practice is being conducted as a test in only a few markets, but it is a good indication of what is to follow and the rest of the world.
According to Netflix, about 100 million users share passwords (almost half of the total 222 million users). These are all missed opportunities and the company claims this is the root cause of the drop in customers in the last quarter.
Regardless of what Netflix claims, most others believe that the main reason for the decline in users is precisely the increase in subscription prices and the strengthening of competition.
No matter what, it looks like Netflix will categorize password sharing in some way. Thus, those accounts that share someone else’s passwords for occasional viewing will not be monetized, but those that share Netflix on a daily basis will not be able to avoid payment. Of course, this is just a rough explanation, all the details will be written among the terms of service.
As said, the platform is projected to lose about 2 million subscribers in the next quarter, but that situation is reported to improve and Netflix will continue to grow sometime in the second half of 2022.
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