Netflix, the world’s most popular movie and series broadcasting platform, announced how many million subscribers it lost due to password sharing, while trying to get over the shock of seeing a decrease in the number of subscribers for the first time in history.
Explaining that it wants to prevent those who subscribe to the platform and sharing their passwords with others in the last period of March, Netflix explained the damage this situation caused to the company. Netflix, the series and movie platform with approximately 222 million subscribers, also announced how many users benefited from the password sharing feature.
According to the statement, half of the company’s total subscribers have users who get a password from a friend and watch Netflix. In other words, more than 100 million people watch movies and series on the platform without paying even 1 dollar to Netflix.
100 million people use Netflix from someone else’s account
Working to change this situation, Netflix is looking for ways to make money from password sharing. Hastings said that instead of keeping the service from these people, they have an alternative to making small payments to them, and that a process called ‘ sub-accounts ‘ has been tested in three countries.
Thanks to this system, subscribers who do not live in the same house will be able to log in to the platform from a maximum of two devices. This will prevent people outside the same home from using the same Netflix account. Saying that this trial process is not going well, the authorities aim to make money from 100 million people with different alternatives.
So how much money is Netflix ‘lost’ due to password sharing from 100 million users? Since Netflix applies different pricing in each country, it is not possible to reach a definite conclusion on this issue. However, if it is necessary to calculate an estimated loss; Netflix is offering a $10 price for the most affordable package in its home country of the US. When we reflect on this to 100 million users, we can say that Netflix has lost at least 1 billion dollars per month due to password sharing.
Netflix lost subscribers for the first time in 10 years
Netflix, which tried to ban friends from using an account from different locations with a decision it took about a month ago, announced the number of subscribers it lost today. The platform, which last experienced a decrease in the number of subscribers in 2011, has been on the rise in terms of subscriber numbers for more than 10 years.