A few days ago we told you that Netflix had put the kibosh on password sharing in the U.S. Netflix wants each account to consist of one household and anyone living in another household must either pay for their own account or have another account pay for them. No longer can someone living in a separate household share a Netflix password and get the streaming service for free.
Twitter subscribers create the #CancelNetflix hashtag
I’ve been a subscriber for 10 years. I’m now married with kids and have homes in multiple countries. For this reason, I upgraded to Premium. Netflix used to be convenient, even if they were overpriced and had mediocre content. They just lost that edge. #CancelNetflixpic.twitter.com/1PkVlVHieB
— Ben (@bennykins78) May 28, 2023
Netflix most likely realized that it would be getting some cancellations after cracking down on password sharing. It probably figured that whatever business it lost would be made up by those willing to pay for their own account, or from those willing to pay for a Netflix user who they previously shared their password with. But it appears that some long time Netflix subscribers are the ones saying goodbye to the streamer.
Netflix still expects to report revenue growth after banning password sharing
Earlier this year during an earnings conference call, the company said, “From our experience in Latin America, we expect some cancel reaction in each market when we roll out paid sharing, which impacts near-term member growth. But as borrower households begin to activate their own standalone accounts and extra member accounts are added, we expect to see improved overall revenue, which is our goal with all plan and pricing changes.”
As of the first quarter of this year, Netflix had 232.5 million paid subscribers world wide according to Statista. In the U.S., that figure is believed to be 74.4 million paid subscribers. During the first quarter of 2023, Netflix reported revenue of $8.162 billion.
