Netflix new CEOs confirm end of password sharing

• Netflix has stated that password sharing will be discontinued this year.
• The CEOs stated that the company intends to boost its subscriber base by 15 to 20 million.
• The company is expected to impose restrictions on password sharing, which may add some extra subscribers.

Netflix, a video streaming company, has stated that password sharing will be discontinued this year and that the company will launch an advertising-supported tier. In an interview with Bloomberg, the new Co-Chief Executive Officers (CEO) Greg Peters and Ted Sarandos, revealed more specifics on the termination of password sharing.

According to Peters, the video streaming platform will not sacrifice the consumer experience even after implementing controlled password sharing in a phased manner.

He went on to say that the majority of customers who do not pay for Netflix but use it will soon have to pay for the material.

He stated that it will not be a universally popular event and that the corporation may confront some dissatisfied customers. Furthermore, the CEOs stated that the firm intends to boost its subscriber base by 15 to 20 million, with a focus on nations such as India.

When asked how many individuals would pay for password sharing during the conversation, Peters responded that the video streaming platform would aim to win back all of these consumers by giving them content like “Glass Onion” every week.

In November, the OTT platform debuted a lower-priced, ad-supported tier that is now available in 12 nations, including the United States, Australia, Brazil, the United Kingdom, Canada, France, Germany, Italy, Japan, South Korea, Mexico, and Spain.

Netflix had 7.7 million paid net additions in the December quarter of 2022, compared to 8.3 million in the same period in 2021.

Netflix added 1.8 million paid members in Asia and the Pacific in the December quarter, down from 2.58 million in the same period last year. The streamer does not provide India-specific figures separately.

Revenue increased by 2% year over year in the fourth quarter, owing to a 4% increase in average paid memberships. According to Netflix, ARM (average revenue per member) fell 2% year over year but increased 5% on a foreign exchange-neutral basis.

Operating income of $550 million in Q4 was down from $632 million in Q4 of the previous year. However, the company is expected to impose restrictions on password sharing, which may add some extra subscribers.

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