As Subscriptions Drop, , Netflix May Crack Down, on Password Sharing.
BBC News reports Netflix could soon begin cracking down on households that share passwords for the streaming service.
In the first three months of 2022, Netflix has lost at least 200,000 subscribers.
The company has reportedly informed shareholders that two million more subscribers may be gone by July.
Our revenue growth has slowed considerably. , Netflix to shareholders, via BBC News.
Netflix estimates over
100 million households currently
share their passwords.
Our relatively high household penetration - when including
the large number of households sharing accounts... , Netflix to shareholders, via BBC News.
... combined with competition,
is creating revenue growth headwinds. , Netflix to shareholders, via BBC News.
Netflix CEO Reed Hastings had previously described password sharing as "something you have to learn to live with." .
Though the streaming giant is aware that password sharing may have attributed to its meteoric rise in viewership, .
the company now says it has caused difficulty in attracting new subscribers.
When we were growing fast, it wasn't a high priority to work on [account sharing]. , Netflix CEO Reed Hastings to shareholders, via BBC News.
And now we're working super hard on it. , Netflix CEO Reed Hastings to shareholders, via BBC News