Technology

Netflix warned of new measures in the use of its platform, after the fall in users and profits

Netflix estimates that there are around 100 million households around the world that use the platform but do not pay for a subscription.

Photo: CHRIS DELMAS/Getty Images

A week after Netflix announced a loss of subscribers for the first time in a decade, the company has begun raising new measures including a global campaign against password sharing and resort to the implementation of advertising.

The global streaming giant ended the first three months of the year with 200,000 fewer subscribers. Netflix, which currently has 221.6 million userssaw record growth in demand in the early days of the pandemic, when people around the world were stuck at home and flocking to their screens to watch shows and movies.

But password sharing and stiff competition from other streaming platforms have made it difficult for Netflix to attract new viewers.

This is what viewers can expect in the futurein an attempt by the platform to increase subscribers and stop the loss of income:

A measure against password sharing

According to Netflix estimates, there are more than 100 million households that use Netflix, but do not pay for the services.

Netflix admitted that it allowed users to share their passwords because it got more people hooked on their platform. However, the launch of other streaming services has made it much more difficult for the company to grow its membership base.

Last month, Netflix began testing ways to make users from Chile, Costa Rica and Peru, who share passwords, pay a fee by additional members.

This model could be expanded to other countries, although it has not been detailed when these changes would be implemented.

Cheap service, but with advertising

Netflix co-founder Reed Hastings has long resisted endorsing the ads, but the company changed course on Tuesday.

“I have been against the complexity of advertising (…) But I am a bigger fan of consumer choice. Y allow consumers who would like to have a lower price and tolerate advertising get what they want makes a lot of sense,” he said last Tuesday.

The move to ads was met with skepticism by some Wall Street analysts, including Rich Greenfield, a partner and media and technology analyst at LightShed Partners. He told NBC News that adding ads would likely result in less viewing time per user per day and ultimatelyin a greater rotation of users.

Reduce investment in new content

To further boost revenue growth, Netflix said it would also you could withdraw spending on your movies and TV shows.

“We’re cutting back on some of our spending growth on both content and non-content spending,” Chief Financial Officer Spencer Neumann said in a recorded interview.

At $17 billion a year, Netflix currently spends more on content than any of its competitorsGreenfield noted.

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