Netflix has started testing the paid account sharing feature in the past months. In the e-mail the company sent to investors, account sharing of the property Netflix There is a statement that it will increase its revenues.
Losing nearly 200 thousand subscribers in the first quarter of 2022, Netflix aims to generate more income from its existing users. The company, which foresees a loss of 2 million subscribers in the next fiscal quarter, started to work to increase its earnings.
Netflix committed to making account sharing paid
Announcing its first quarter earnings, Netflix announced that it will restrict password sharing in the e-mail it sent to investors. Underlining that it aims to increase profitability, the company said, “We are working on improvements in our service and a revenue model for those who use the same account more than once. We will keep our operating margin at 20 percent as we work towards effective monetization.” made statements.
The company underlined that accounts used by more than one person play an important role in extra earnings. In addition, the company announced that more than 100 million accounts are used in more than one household with password sharing.
Explaining that the attempt to make account sharing for a fee is a medium-term opportunity, Netflix said, “We are determined to monetize password sharing. We think this feature is more important than the membership increase.” said.
Netflix CFO Spence Newman, reassured investors that subscriber growth should resume in the second half of the year. Taking serious steps to increase its revenues, the company announced that it has also started working on the advertising subscription option. It is estimated that new features will be available to users next year.
What do you think about Netflix’s paid account sharing decision? You can share your ideas in the comments section and on the SDN Forum.