In February 2023, Spain became one of the four countries affected by Netflix’s policy against shared accounts. A war with which the platform wants to prevent around 100 million in the world from sharing an account irregularly, to the detriment of the company’s accounts. The first company user crisis in 2022 it set off alarm bells and caused a change in strategy that has been implemented in record time. now a kantar survey It puts the number of users that Netflix has lost in the first quarter of 2023 at one million, although it points out that two-thirds did not pay for the service.
Just a few days ago, the company now run by Ted Sarandos published its first quarter results and in its letter to investors they took into account the drop in users as a result of the password sharing restriction. In fact, they expect that both user and economic objectives will not be met until the second half of the year.
User cancellations in the first three months of the year have tripled compared to the same period of the previous year. And the study also shows that ceRoughly half of outgoing users have no intention of paying for the servicewhile 10% of subscribers who have stayed on Netflix have expressed their intention to unsubscribe in the second trimester.
The figures do not seem to scare Netflix, which has announced its intention to extend monetization of shared passwords globally, including the United States market. In this sense, the company has the example of Canada which, despite the initial drop, now has a larger paying subscriber base than before implementing the measure.
In parallel, the company has been satisfied with the results obtained thanks to the standard plan with advertising and has announced improvements that seek to “make its offer more attractive and reinforce the commitment” of those who have already subscribed. Especially now that your competitor Warner Bros. Discovery has announced the landing of the new Max service which also includes a cheaper modality with ads.
He increase and improvement of the offer of competitors in the streaming sector -with the arrival of SkyShowtime or the commitment to Prime Video- it has made things difficult for Netflix, which considers that the money it stopped earning from shared accounts affects the company’s ability to continue creating quality content. The strong point of the capital N platform has always been its (almost) endless catalog and its ability to produce original stories in all territories, Spain included.
