As a result of Netflix cracking down on ``free riding'' by sharing passwords, the number of users decreased by more than 1 million, and the number of canceled users surged to three times that of the same period last year



Netflix provides a paid

account sharing service to crack down on users who share one account and do 'free riding'. However, in Spain, where the account sharing service was introduced, more than 1 million users canceled their Netflix subscriptions in the period from January to March 2023, and the number of canceled users tripled compared to the same period last year. It has been reported that

Final-Q1-23-Shareholder-Letter
(PDF file) https://s22.q4cdn.com/959853165/files/doc_financials/2023/q1/Final-Q1-23-Shareholder-Letter.pdf



Netflix's crackdown on password sharing results in over 1 million fewer users in Spain

https://www.kantar.com/inspiration/fmcg/netflix-crackdown-on-password-sharing-results-in-over-1-million-fewer-subscribers-in-spain



Netflix Password Sharing Crackdown Leads to 1 Million Customer Losses in Spain - Bloomberg

https://www.bloomberg.com/news/articles/2023-04-25/netflix-loses-1-million-users-in-spain-over-password-policing



Netflix Loses 1 Million Spanish Users Over Password Policing | Time
https://time.com/6274627/netflix-loses-million-spanish-users-password-policing/

Netflix allows account sharing only with family members and other people who live together, but account sharing with non-residents is not allowed. However, in reality, it is said that more than 100 million users around the world share accounts.

Therefore, Netflix has added a ` `function to force logout of another device in the same account '' and has started a paid account sharing service. The account sharing service will start in Canada, New Zealand, Portugal, and Spain in February 2023, and will be rolled out in the United States by June 30, 2023.

Netflix is testing a function to share accounts and make users pay for unauthorized viewing - GIGAZINE



Netflix's account sharing service can allow up to two additional members per account, paying 7.99 Canadian dollars (about 800 yen) per user in Canada and 3.99 euros (about 587 yen) in Portugal. is required.

However, according to the Kantar Group, a market research group, it is reported that more than 1 million users decreased in Spain in the three months from January to March 2023. In addition, it is clear that about two-thirds of the more than 1 million users who decreased were sharing accounts with people other than cohabitants.

'It's clear that this sharp decline in users is due to Netflix's crackdown on free riding on accounts,' said Dominic Snebo of the Kantar Group. It also reports that even if many users who canceled did not pay for their subscriptions, it would be a blow in terms of ratings for Netflix's shows and services.



In addition, Kantar Group reports a 3x increase in subscription cancellations in Q1 2023 compared to the same period last year in Spain. In addition, about one-tenth of Netflix subscribers in Spain have revealed that they plan to cancel in the second quarter.

In its first quarter financial results announcement on April 18, 2023, Netflix reported, ``When we announced a paid account sharing service, the number of people canceling subscriptions increased in each country's market.'' On the other hand, we speculate that 'the drop in user numbers before users pay to register their accounts is temporary.' Furthermore, ``In Canada, the number of paying members has increased compared to before the launch of account sharing services, and revenue growth is accelerating.'' is listed.

In addition, Netflix's first quarter results showed that sales increased by 3.7% from the same period last year to 8.162 billion dollars (about 1.9 trillion yen), while the final profit decreased by 18% to 1.35 billion It was a dollar (about 170 billion yen). Also, the number of paying subscribers worldwide increased by 4.9% to approximately 232.5 million.

in Web Service, Posted by log1r_ut