As you know, Netflix announced the password-sharing ban and informed that it will be implemented in a total of 100 countries in May. The Netflix password sharing restriction, which started in the United States, Canada, New Zealand, Spain, and Portugal, has expanded to more countries in recent days. Surprisingly, contrary to the expectations of a decrease in subscribers and revenue, the situation has been the opposite for Netflix.
Netflix’s password-sharing ban did not prevent users
According to the company’s latest quarterly report, Netflix has experienced growth in its revenue, profits, and the number of paying subscribers. Interestingly, despite the challenges, both revenue and the subscriber count are still on the rise. All figures have exceeded expectations and surpassed analysts’ predictions. At the beginning of the story, the popular video streaming platform, Netflix, introduced the “paid sharing” feature (officially known as the crackdown on account sharing) in the United States.
Following this new decision, the increase in the platform’s subscriber count has drawn attention. Netflix gained 5.8 million new subscribers after the announcement of the decision, without facing the expected negative reaction. Consequently, Netflix announced that it will implement the same approach in all remaining countries. The reason behind this outcome comes from a recently revealed 15-page report.
The report revealed that the cancelation response among users who suddenly lost access to their friends’ accounts was low. Netflix also eliminated the cheapest ad-free subscription, the basic plan, priced at $9.99 in the US (£9.99 in the UK, €9.99 in the EU). Instead, new and returning users will have the option to choose from the Standard plan with ads for $6.99, Standard plan for $15.49, or the Premium plan for $19.99, all of which include advertisements.
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The basic plan is now only available for existing users who are still on that plan, but once they switch to another plan, they will lose the option to use it. The company is also quite transparent about not relying on advertisements for revenue, at least for now. Netflix is currently working with Nielsen and EDO to enhance its advertising services.
