The days of swapping Netflix passwords are coming to an end.
Netflix is expected to add ad functionality to the platform soon.
For the first time in a decade, Netflix lost 2 lakh users.
Because everyone is a "jugaadu" in some way, they've been sharing their Netflix password with not only their family, but also friends, friends' friends, and people they've never met before. This is about to come to an end.
We all expected this to happen at some point, didn't we? Netflix has always advised users not to share their account passwords with others, but no one has heeded the advice. Because everyone is a "jugaadu" in some way, they've been sharing their Netflix password with not only their family, but also friends, friends' friends, and people they've never met before.
This "jugaad" will soon come to an end. This has already been confirmed by the streaming platform. Netflix CEO Reed Hastings recently said that the company had lost 2 lakh customers for the first time in a decade. The company's stock prices plummeted to an all-time low as a result of the same rationale.
The corporation attributes the drop in subscribers to the password sharing industry. "Sharing is likely to have aided our growth by increasing the number of individuals who use and appreciate Netflix." With features like profiles and multiple streams, we've always attempted to make sharing inside a member's household simple. While they have been extremely popular, they have caused uncertainty regarding when and how Netflix can be shared with other families," Netflix wrote to shareholders earlier this week.
For a long time, Netflix has been trying to crack the password sharing business. Last month, the streaming service stated that subscribers in Chile, Costa Rica, and Peru would have to pay a fee if they wanted to share accounts within their families. A similar method, it is thought, may eventually be used in all other markets, including India.
Netflix will have to become more aggressive in the coming days and months to quickly recoup consumers on the site. The CEO of the company has already hinted that advertisements will be added to the site. Hastings disclosed during a recent earnings conference that the firm is "very open to delivering even lower costs with advertising, as a consumer choice," after years of resisting bringing commercials to Netflix.
During the same earnings call, Hastings claimed he has always been "against the complexity of advertising" and is a "strong fan of the simplicity of subscription". Regardless, Netflix will soon be able to run advertisements. Hastings now thinks an ad-supported tier "makes a lot of sense" for "consumers who want a lower price and are tolerant of advertising."
He also stated that the firm is investigating the possibility and "trying to figure it out over the next year or two."
In addition, Netflix's CEO stated that the company is exploring releasing more affordable plans soon. He most likely believes that by offering affordable options, the company will be able to attract more users. It's not that Netflix hasn't tried to provide cheaper options in the past, but they haven't proven to be successful. Perhaps in the future, cheaper plans will be sufficient for the platform.
Netflix is one of the most costly streaming providers in the country, which may be why Hastings wants to bring in more affordable plans. Netflix now offers four membership levels in India, each of which allows a certain number of people to utilise the platform at the same time. Users can create their accounts on the site, although the number of accounts they can have varies depending on the package they choose.
The mobile package costs Rs 149 per month and includes only one screen, while the basic plan costs Rs 199. Support for two and four screens is available on the standard plan, which costs Rs 499, and the premium plan, which costs Rs 649. Other plans, aside from the mobile plan, allow consumers to stream anything they want on a larger screen.
So, if you share or use someone else's Netflix login, rest assured that these days are quickly coming to an end.