Netflix has cited sharing passwords as one of the causes behind its slow growth.
The OTT giant added 24.1 lakh new customers in the third quarter, exceeding forecasts. Netflix is still on a slow growth in the recent years.
Netflix said that streaming is the future of entertainment as its rivals are investing billions of dollars to scale their services
Do you give your Netflix password to family members who want to watch content on the OTT platform? This practice could cost you money. The video streaming behemoth will now charge users for disclosing their password.
One of the reasons for Netflix’s slow growth is password sharing. In the third quarter, the OTT behemoth added Twenty-four Lakh Ten Thousand new customers, exceeding expectations.
Netflix’s growth has been slow in recent years according to one of the reports.
Throughout the first half of 2022, it lost twelve lakh customers. Spencer Neumann, the company’s chief financial officer, stated that the company is still not growing as quickly as it would like.
Netflix said during the quarterly earnings briefing it would charge users additional fees from those subscribers who are sharing their login credentials from 2023 onwards.
The OTT platform has not revealed the fees, it is expected the price will be around $3-$4. The users who don’t wish to pay any extra fees can use Netflix’s migration tool which helps them to transfer their profiles.
Netflix, which has blockbuster titles like Narcos, Squid Games, House of Cards to a name a few, has been witnessing losses in revenue.
Netflix said that streaming is the future of entertainment as its rivals are investing billions of dollars to scale their services, In its quarterly report.
Conceding that it is difficult to build a large and profitable streaming business, Netflix said that all the rivals are losing money on streaming as the aggregate annual direct operating losses this year could be more than $10 billion as compared to its losses of $5-$6 billion.