Back in late May, we shared the news about Netflix imposing a rule to overcome the password-sharing custom of its users. The scheme was part of a plan to overcome the custom of some users who found a way to use content provided by Netflix without paying for it. Furthermore, it was all done in a legal way, as all these users needed was a good friend who was willing to give them his password.
As a result of the new crackdown on the password-sharing custom that some users had, it seems that Netflix is a lot more successful than before. The inevitable has happened, as many of those who were bypassing payment by relying on a friend are finally bringing out the dough to watch their favorite content on Netflix.
Netflix has gained almost 6 million new subscribers
Netflix is celebrating impressive growth in its latest quarterly report, surpassing all expectations of analysts. Revenue, profit, and the number of paying subscribers have all exceeded forecasts, and GSMArena brings details about the new report.
While the streaming platform cracked down on the famous password-sharing scheme, the move led to 5.8 million new paying subscribers. Despite losing one million subscribers in Q2 2022, Netflix plans to introduce an ad-supported tier at some point this year.
Surprisingly or not, Netflix users didn’t react strongly to the crackdown on account sharing, and the company discontinued its Basic plan in the US, offering new options with and without ads. However, this is perfectly understandable, as it’s the company’s right to find a way to allow access to its premium content only to those who are willing to pay. Surely it’s more tempting to ask a friend for his Netflix account than to pay, but at the same time, we all have to respect the enormous amount of work provided by those in charge of the famous streaming platform.
Although Netflix is exploring ad revenue, it remains focused on developing its ads business and providing a positive experience for advertisers.
How Netflix managed to overcome the password-sharing custom
Netflix had a pretty unique idea to overcome the famous custom of some of its users to get their hands on a Premium account without paying for it. If, for instance, you have a premium Netflix account and you share the password, that will cost you $8. The only exception is if the person you’re giving your password to lives in the same household as you.
Netflix explained in a blog post:
“A Netflix account is for use by one household. Everyone living in that household can use Netflix wherever they are — at home, on the go, on holiday — and take advantage of new features like Transfer Profile and Manage Access and Devices.
“We recognize that our members have many entertainment choices. It’s why we continue to invest heavily in a wide variety of new films and TV shows — so whatever your taste, mood or language and whoever you’re watching with, there’s always something satisfying to watch on Netflix.”
