The announcement on password sharing comes as Netflix revealed it misplaced 200,000 subscribers to start out 2022 and expects to lose 2 million extra by summer time.
On the heels of an industry-shattering announcement Tuesday that it’s hemorrhaging subscribers in 2022, the pinnacle of Netflix warned that the corporate will work to dam the sharing of accounts, estimating that 100 million households are at the moment utilizing the service with out paying for it.
Netflix CEO Reed Hastings mentioned the adjustments to finish password sharing will begin rolling out within the subsequent yr or so, however CNBC experiences a concrete plan wasn’t introduced.
The Los Gatos, California, firm estimated that the 100 million determine contains 30 million households within the U.S. and Canada.
“These are over 100 million households already are selecting to view Netflix,” Hastings mentioned. “They love the service. We’ve simply received to receives a commission at a point for them.”
To cease the observe and prod extra individuals to pay for their very own accounts, Netflix indicated it would broaden a take a look at launched final month in Chile, Peru and Costa Rica that enables subscribers so as to add as much as two individuals residing outdoors their households to their accounts for a further charge.
As just lately as final month, a Netflix spokesperson informed VERIFY that these checks weren’t happening within the U.S.
The information got here the identical day Netflix introduced it misplaced 200,000 subscribers in January – March and expects to lose one other two million between April and June. The revelation despatched Netflix inventory tumbling 25% Tuesday.
If the inventory drop extends into Wednesday’s common buying and selling session, Netflix shares can have misplaced greater than half of their worth to date this yr — wiping out about $150 billion in shareholder wealth in lower than 4 months.