Popular streaming giant Netflix has announced that it would be cracking down the households who share the passwords as it is looking forward to sign up new members for its subscriptions after it has experienced a sharp downfall of subscribers. Due to the growing competition in the OTT market, nearly 200,000 people have left the service during the first three months of the year. The competition in the market has indeed become intense.
The company faced a hit when it hiked the prices of the subscriptions in some of the countries and also left Russia due to the going war with Ukraine. Netflix has also warned the shareholders that nearly two lakh subscribers are likely to leave in three months to July, 2022. The company while talking to the shareholders said that their revenue growth has slowed down considerably. Netflix informed about its revenue status as it published its first quarter results. It also talked about some of the major reasons behind its revenue loss was the large number of households that share accounts and the excessive competition.
The streaming giant has also alleged that more than 100 million households are breaking the rules by sharing passwords. CEO of Netflix Reed Hastings had once said that such a practice is something that they have to live with and is to a certain extent legitimate as it is within the family. The firm also said that the account sharing had actually fueled the growth as it got more people to Netflix.
Hastings added that that practice made it tough to attract fresh subscribers in some of the countries. He also said that when they notices a revenue growth they did not much notice about the account sharing but now they are working hard on it. Moreover, pulling out of Russia in March due to the war situation had cost it 700,000 subscribers. 600,000 more people stopped using the services in US and Canada after it hiked the prices in January, 2022.
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