Millions Leave Netflix After Password Sharing Crackdown

Due to the suspension of account sharing, Netflix, the leading entertainment channel, has lost millions of customers.

Millions Leave Netflix After Password Sharing Crackdown

Due to the suspension of account sharing, Netflix, the leading entertainment channel, has lost millions of customers.
In Spain, the channel lost close to a million subscribers in the first quarter of 2023, according to the report. The decision by the business to stop account sharing is what led to this.

As a result, the decision had an enormous influence on the number of customers, which decreased the company’s income.

A €5.99 ($6.57) monthly tax was implemented by Netflix in February 2023 for Spanish customers who shared their credentials with other users. Two-thirds of the country used someone else’s password, according to the report.

Dominic Sunnebo, global insight director for Kantar’s Worldpanel business, said that it was obvious that the crackdown was to blame for the sharp decline. Therefore, losing a million subscribers would hurt Netflix’s ability to get word-of-mouth recommendations for its programming even if the majority weren’t paying customers.


According to a study by Kantar, the number of cancellations of subscriptions quadrupled in the first quarter over the previous quarter. However, 10% of active Spanish Netflix subscribers said they would stop watching in the second quarter.

Following testing across a number of Latin American nations, Portugal, New Zealand, and Canada are all included. Millions of people use Netflix every day without ever spending a dime, claims Netflix.

However, the business is using various tactics to entice subscribers back to its channel. The offers channel targets customers who share their login information with others and offers a cheaper membership with adverts.

Netflix anticipates consumers will soon begin paying for their memberships. Sharing accounts has always been a major problem for Netflix. Although sharing an account is forbidden by the company’s terms of service, many actual and primary users do so anyway.

In response to this persistent problem, the organisation has chosen to strictly enforce account sharing restrictions. On the other hand, whether this tactic will eventually be successful still has to be established.

Analysts claim that Netflix’s new price structure may deter customers from utilising the service. Others have, however, noted that the business focus on increasing profitability may come at the expense of extremely satisfied customers. which could ultimately hurt the bottom line of the business.

Netflix continues to be among the most widely used streaming services in the world despite the aforementioned concerns. The business continually seeks to retain prospective clients and draw in new ones by spending money on fresh content.

Additionally, Netflix has entered a new market, increasing its traffic and fostering growth.

Unquestionably, Netflix’s ability to balance user delight and profitability rests on the quality of the material it lowers.

However, it is also anticipated that Netflix may be able to maintain its position as one of the top streaming services in the world if it continues to offer high-quality content while also addressing the account-sharing issue.

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Streaming services need greater account sharing privacy. With the same login and password, it enables multiple users to access the channel at once. Although some users may pay for their subscriptions, the majority try to borrow friends’ or coworkers’ accounts.

As a result, it’s difficult for streaming services like Netflix to keep up their level of quality and consumer interest. The latest move by Netflix to tighten down on accounts will have a big effect on its user base.

Written by Istafa Ali


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