Netflix has lost 200,000 USA subscribers in the first quarter of 2022 alone, making this the biggest drop in subscribers the entertainment company has had in a decade.
The company released a statement to its shareholders and attributed the problem to various factors such as password sharing, the Ukraine-Russia war and competition from other movie and TV streaming apps.
However, Netflix laid emphasis on the password sharing as its biggest challenge stating that they initially made the feature available in an attempt to grow their platform. As of right now, they predict that over 100 million homes are using Netflix without a subscription due to password sharing.
“We’ve always tried to make sharing within a member’s household easy, with features like profiles and multiple streams. While these have been very popular, they’ve created confusion about when and how Netflix can be shared with other households,” read the statement.
Netflix has decided that they will not ban password sharing, but will instead use the opportunity to convert those users into paying customers. Testing is currently underway in three countries; Peru, Costa Rica and Chile where users will be paying 2,380 CLP in Chile, 2.99 USD in Costa Rica, and 7.9 PEN in Peru.