Netflix is said to be looking to lessen those sharing passwords with other households by charging for it. The company has done so in some markets previously, but this time, it is looking to do so in all markets.
The company’s recent financial report showed a decrease in paying subscribers that lowered its stocks by 35%.
There are about 100 million households that share passwords according to Netflix. These are said to be the root cause of this quarter’s decline in paid subscribers.
The company has estimated that around 200,000 users left the platform or decided to join password-sharing accounts.
The streaming service mentioned, “There’s a broad range of engagement when it comes to sharing households from high to occasional viewing. So while we won’t be able to monetize all of it right now, we believe it’s a large short to mid-term opportunity. As we work to monetize sharing, growth in ARM, revenue, and viewing will become more important indicators of our success than membership growth.”
It is projected that it will lose around 2 million subscribers in the next quarter. Although Netflix CFO, Spence Newman reassured its investors that subscriber growth should resume in the second half of the year.