Netflix loses over 1 million users in just one country after starting to charge for sharing passwords

Netflix has begun to tighten down on password sharing since it was affecting its member base. However, it appears that Netflix’s revised password-sharing policy has backfired. According to the most recent figures, Netflix has lost over 1 million Spanish members since it began tightening down on password sharing. According to Kantar Market Research, Netflix lost over a million customers in Spain in the first quarter of 2023. This might be because the company’s efforts to cut down on password sharing backfired. Netflix announced a monthly cost of Euro 5.99, which is over Rs 500 in Indian rupees, for Spanish subscribers in early February to prevent them from sharing their login data with other homes. The corporation also put in place technology safeguards to identify and prohibit such sharing. According to Kantar’s data, which is based on household streaming habits surveys, two-thirds of the consumers lost by Netflix shared passwords with other homes. Even if the majority of the users were not paying customers, the loss of a million users might have a detrimental influence on Netflix’s word-of-mouth recommendations for its shows and services. The sharp decline in users, according to Dominic Sunnebo, global insight director at Kantar’s Worldpanel Division, is a direct result of the company’s crackdown on password-sharing. It is crucial to remember, however, that this is only one-quarter of the data and may not indicate a long-term trend. Netflix may continue to seek such methods to avert income loss, despite the bad implications of its password-sharing crackdown. However, in order to prevent losing even more customers in the future, the corporation may need to balance this with offering a great user experience. Following a successful rollout in Latin American countries, Netflix has implemented a similar fee for password sharing in Portugal, Canada, and New Zealand. The revelation of this price elicited a negative reaction in each area, but Netflix anticipates that this will be temporary as customers who did not pay for their accounts begin joining up on their own. “In Canada, which we believe is a reliable predictor for the US, our paid membership base is now larger than it was prior to the launch of paid sharing, and revenue growth has accelerated and is now growing faster than in the US,” Netflix said in a statement. It remains to be seen how Indian consumers would respond if Netflix begins charging for password sharing. Netflix may lose a significant number of subscribers if password-sharing restrictions are implemented in India. Read all the  Latest News ,  Trending News ,  Cricket News ,  Bollywood News , India News  and  Entertainment News  here. Follow us on  Facebook,  Twitter and  Instagram.