Falling below expectation, Netflix’s first-quarter results for 2022 are out and the company has reported a subscriber loss of 200,000, which is well below its target of adding 2.5 million subscribers.
The loss in subscribers has also sparked conversations on how Netflix could look at cracking down on password sharing or account sharing, which is likely impacting revenue.
Typical Netflix premium account supports up to four devices simultaneously, and this enables sharing account details with extended family and friends.
One reason is that Netflix lets users login from the same account on more than four devices, unlike other services.
The end result is that often one Netflix account is accessed by more than just four people. In contrast, a service like Disney+Hotstar limits login to four devices even for premium subscribers.
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But it looks like all of this will change. Netflix intends to get users who share accounts beyond their immediate family to pay for this at some level. CEO Reed Hastings indicated this is something they have been testing for the past two years.
In an investor earnings call post the results, Hastings said, “We’re working on how to monetize sharing.. And now, we’re working super hard on it,” adding that they have over 100 million subscribers who love the service, but they (Netflix) have “just got to get paid at some degree for them.”
