Maxime Asseo with AFP 6 p.m., January 20, 2023
To compensate for the decline in its annual net profit in 2022, Netflix has taken measures to generate new sources of revenue such as subscription with advertising at €5.99.
In the coming weeks, the streaming service will also require users to pay for account sharing.
1.2 million subscribers lost in the first half.
This is how Netflix started its 2022 year, before bouncing back in the spring and gaining 7.66 million new subscribers between October and December.
A rise that does not prevent the streaming service from being “under strong pressure to achieve better results for its shareholders”, notes Paul Verna, analyst at Insider intelligence.
This explains the implementation of strong measures, such as the end of free account sharing with loved ones.
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Pay to add profiles
With the loss of more than 50% of the value of its title in 2022, the platform had already announced a new cheaper subscription - with advertising at €5.99 - implemented since November 2022. The end of free account sharing , which will also require users to pay to add profiles to their account instead of sharing their password for free, will come into effect in the coming weeks and months.
For people using an account that is not theirs, this measure plans to cut off their access to the owner's account, if the latter does not activate the new paid option, relays the Huff Post from a Netflix press release which estimates that the practice of account sharing extends to more than 100 million households worldwide.
A hunt for non-subscribers which should be done through television viewing, explains on its BFM TV site, since Netflix will be able to know if different households use the same account via geographical location by IP address.
A more difficult strategy to implement for mobile devices such as smartphones, tablets and computers, which could push account sharing enthusiasts to make more use of the screen sharing function of their smartphone on a connected TV, adds The media.
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"Always more"
This new measure "is not going to be a universally popular decision", acknowledged Greg Peters.
The new co-director expects a wave of cancellations at first, then a return from consumers.
"Our job is to always have more titles that people absolutely want to see," he added.
A successful goal, to say the least, since the 2022 holiday season was marked by the success of new seasons such as “The Crown”, on Queen Elizabeth II, and “Emily in Paris”.
New programs, including the phenomenon series "Wednesday" and the documentary series "Harry & Meghan", where the princely couple recounts how they decided to abandon the British monarchy, have also largely contributed to the popularity of the platform.
Greg Peters said he wanted "always more": "more users", "more engagement" and "more sources of revenue".