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How Netflix Plans to Cope With an Important Problem?

How Netflix Plans to Cope With an Important Problem?

A lot of people from all over the world like Netflix. It is not hard to understand them. Currently, Netflix is the world’s largest streaming video company. Unsurprisingly, it wants to make more money and the company found an easy solution. 

It wants more people to pay for its service. The streaming giant stated that a global crackdown on password sharing is coming. The company said it estimates more than 30 million U.S. and Canadian households are using a shared password to access its content. According to Netflix, more than 100 million additional households were likely using a shared password worldwide.

Netflix and its users

In its quarterly shareholder report, the world’s largest streaming video company acknowledged it has purposefully allowed generous out-of-home password sharing because it helped get users hooked on the service. 

But with competition from Disney, Apple TV+, Paramount Global, and other streamers eating into its growth, the company said it wants the millions of households sharing passwords to start paying. 

The company reported a loss of 200,000 paid subscribers in the first quarter that ended on March 31. For the first time in more than 10 years, it lost subscribers during a quarter. Netflix projected it will lose 2 million more subscribers in the second quarter. 

At the moment, Netflix has 222 million subscribers from around the world. The company enjoyed booming growth during the Covid-19 pandemic, but that customer surge has subsided – and now turned negative – as many countries lifted restrictions. 

Netflix created a consumer-friendly brand over the years and allowing password sharing helped with that image.  However, the company decided to change the status quo. Earlier this year, it began testing different ways to curb password sharing in Chile, Peru, and Costa Rica. Last but not least, it didn’t outline a concrete global strategy yet but suggested global changes could come as early as 2023. 

The post How Netflix Plans to Cope With an Important Problem? appeared first on FinanceBrokerage.

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