Netflix may finally be ready to crack down on password sharing. For real this time. On Tuesday, the streaming giant announced that it is losing subscribers for the first time in a decade in a letter to shareholders. It looks like 200,000 subscribers have fled the platform which went from 221.84 million paying members last quarter to 221.64 this quarter.
The company projected that its customer base will continue to go down next quarter, down to an estimated 219.64 million people. After the letter, Netflix’s stock took a big hit, with share values dropping by more than 25%.
The company largely blamed the membership loss on competition and its existing success. “Our relatively high household penetration – when including the large number of households sharing accounts – combined with competition, is creating revenue growth headwinds,” Netflix wrote in the shareholder letter.
But the company also noted that, on top of its more than 222 million paying subscribers, an additional 100 million households are using their Netflix content via password sharing, which contributes to the losses. And so, the company is threatening to crack down on password sharing, stating that they’re working on the “monetization of multi-household sharing.”
So, it might be time to stop password sharing pretty soon.
Source Gizmodo
Image Credit Pexels
Filed Under: Entertainment News
