Netflix is losing subscribers after cracking down on passwords, but in the long run, it may not even matter.
Netflix has planned for a while now to crack down on password sharing via introducing new systems where users have to pay more to use their Netflix account spread across different people in different houses. This hasn’t come to territories like the US just yet, but this has already begun in places like Spain, Canada, and New Zealand. According to Bloomberg, though, in Spain, this new policy cost Netflix around a million subscribers.
If that sounds bad, well, it is, but it might not be as bad as it seems. Some hope that an extremely negative reaction from customers might encourage Netflix to walk back these new restrictions, but that may not be the case. The problem is that while the password-sharing crackdown is costing Netflix subscribers, it’s also the case that subscribers oftentimes do return. According to Netflix, the loss of subscribers is only temporary.
Eventually, a new season of Squid Game will come out, or the next huge Netflix hit show will drop, and when that happens, inevitably subscribers will start to tick back up. Plus, it’s important to remember that Netflix has a cheaper subscription tier supported by ads coming in the second half of 2023, too, so there’s a good chance that those affected by the password crackdown may well choose to sign back up with the new subscription tier, too.
Unfortunately, all of this does mean that it doesn’t look like Netflix is going to back down from its password-sharing crusade, but you will, at least, have the chance to spend less than you might expect to use the service. Both Netflix’s incoming lower-priced subscription tier as well as how using your account across multiple households is set up will enable you to enjoy Netflix for less than what you might for a standard subscription.
