Netflix delays password-sharing in the US
As of Tuesday, Netflix announced that it would delay its plans to crack down on password sharing in the US until sometime before July. The streaming service said it would “shift out the timing of the broad launch from late Q1 to Q2.”
Earlier this year, Netflix committed to crack down on password sharing “more broadly” by the end of the first quarter of 2023. However, these rules were never implemented in the US.
Netflix says it is “pleased with the results” of its paid sharing implementation in these four countries, and has helped Canada’s paid subscriber base grow faster than the US’s.
When users want to share their Netflix accounts with people beyond their “primary” households in these locations – along with some Latin and Central American countries where it first began testing password-sharing rules – they must pay extra
In Canada, Netflix charges an additional $7.99 CAD (about $5.97 USD) per month per person, although it’s only possible to share an account with up to two other people if you subscribe to its Standard or Premium plan.
Netflix co-CEO Greg Peters said during an earnings call that delaying the launch of paid sharing would allow it to implement some of the improvements it made while testing the feature outside the U.S.
According to Netflix, it wants to ensure that users can continue to access Netflix while they travel outside their primary homes, as well as provide tools for managing their accounts.
Peters said, “We felt based on those results, it was better to take a little bit of extra time, incorporate those learnings and make this transition as smooth as possible as we can for members.”
We are able to see for the first time in this quarter whether Netflix’s ad-supported tier has made any significant impact. When it was first introduced in November, the plan got off to a shaky start, but it picked up steam over time, according to data analytics firm Antenna.
The number of Netflix subscribers grew by 1.75 million in the first quarter of 2023, bringing its total to 232.5 million around the world. By comparing the cheapest ad-free tier with the $6.99 per month ad-supported tier, streaming journalist Janko Roettgers observes that Netflix makes more money per subscriber.
CEO Spencer Neumann confirmed this during Netflix’s earnings call, noting that the company is “pleased with our per member ad plan economics” and that it is even “higher” than its Basic plan without ads.
The company says it’s bringing new perks to the plan starting with Canada and Spain, such as 1080p video quality instead of 720p and the ability to watch two streams at the same time. Currently, the ad-supported tier does not offer all Netflix content available on other plans.
Netflix saw success with its Chris Rock: Selective Outrage live comedy special, which landed on its top 10 shows list during that week, as it looks to offer more than just on-demand content.
Netflix’s second attempt at hosting a live event didn’t go as planned, however, as technical issues forced Netflix to cancel its Love Is Blind live reunion special altogether, leaving users only able to watch the episode after it had aired.
The quarter marks Netflix’s first with co-CEOs Ted Sarandos and Greg Peters assuming the reins. Hastings is now Netflix’s executive chair following his resignation as CEO in January.
As well as marking a major milestone for the company, it finally ends its DVD business, which it was known for before becoming a streaming giant.
