For the first time in its history, the streaming service Netflix is losing subscribers, and is already looking for alternatives: paying less with advertising, and paying for shared passwords
Although it continues to offer high quality content, the rise in prices and the possibility that payment for password sharing will be extended to the entire planet, Netflix announced a few hours ago that it has lost 200,000 subscribers in the first three months of this year.
Netflix loses customers
The fact that in several countries is testing the payment for sharing passwords, and that prices do not stop rising from time to time, has generated that 200,000 subscribers have canceled their monthly subscription to the most popular streaming service.
And not only this, but Netflix itself has announced that it estimates that for the next three months it will lose up to 2 million more subscribers.
Netflix’s history has been one of a service that has fought piracy like no other has. Fair prices for a service that has generated substantial profits for the company to the point of almost monopolizing the market.
In January of this year the streaming service had 221.84 million subscribers and three months later it dropped to 221.64 million. This is the first time the service has lost users in its 10 years of life.
Faced with this loss of subscribers the company has communicated that currently more than 100 million households use a shared password, with 30 million only in the United States and Canada; it is possible that this alternative is approaching its end.
Netflix’s idea, or the one it is currently suggesting (we’ll have to see if this is really the case), is to start with pay-per-password. That is to say, that those tests that it has done in other countries could be extended to the United States and others. But of course, the overall drop in subscribers could multiply exponentially. A fear that is present at Netflix.
That Netflix has ignored the payment to the shared passwords is because it has been growing without being affected, but due to the latest data provided by lost subscribers, it is faced with the situation of forcing this payment.
Another alternative provided by Reed Hastings, CEO of the company, is the implementation of a monthly subscription with reduced advertising in its price. That is, as Hastings himself refers, those users who do not mind seeing advertising, could pay less for the service.
Now we will see if it potentially affects the service and if it is really at a crossroads. There are more platforms waiting to pick up those disenchanted subscribers, so everything is set for the next few weeks to be very important for Netflix and its competitors.