In a new report for investors, Netflix says it wants to expand the end of password sharing in the very near future. The result for the first quarter of 2023 is the window chosen by the group. At the moment, no new world region has been mentioned.
It is no longer a secret. In the relatively near future, what until then was the very philosophy of Netflix will disappear: the exchange of passwords in this case, which allows you to share an account with several members of your environment.
The platform has made its intentions in this area clear during 2022. Tests have even been carried out since last March in South America (Chile, Peru and Costa Rica), where users must contract a payment option (2.99 dollars) to add a new member. The latter is entitled to his own profile, username and password.
In October 2022, the SVOD service announced that this new option will roll out worldwide in 2023. This time frame has now come to an end: the opportunity for Netflix to specify its schedule. This is precisely what was done in the last report sent to investors, we learned the edge.
First quarter 2023
One passage explicitly addresses this paradigm shift. So Netflix is targeting the end of the first quarter, in March, on the idea, to roll out paid account sharing on a larger scale, we can read. For now, the company does not mention new world regions or countries. However, in the long run, the purpose will be the same for everyone.
The firm justifies this choice for financial reasons. It is estimated that more than 100 million households benefit from this system. A considerable deficit, which would allow it to invest in new projects and develop its activity with more serenity.
Nothing further says that the entire market will be affected from the first quarter of the year: Netflix could operate gradually, by continent for example, to control the possible disruptions -in terms of the number of subscriptions- that this would generate.
An eventful year 2022
The 2022 harvest was difficult for the group, which lost subscribers for the first time in its history: 1.2 million in the first two quarters of last year, before gaining momentum in the third quarter (an additional 2 million subscribers), as well as in the fourth quarter (7.6 million additional subscribers).
This recovery strategy is based in particular on its brand new ad-supported subscription, the Essential offer at 5.99 euros… which, however, does not include all the movies and series available on the platform.
The thing is, the era of password sharing seems to be ending soon. In response, Netflix expects a wave of casualties, but that eventually the additional paid accounts will lead to increased revenue. The future will show you that you are right or wrong.
According to information from the Wall Street Journal, Netflix would soon take steps to limit the sharing of passwords between users. The challenge is not to scare away your subscribers.
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