Netflix is apparently losing over $6 billion a year, with many pointing toward “marketplaces” where Netflix passwords are shared for a fraction of the subscription fee as the main issue.
The premium account fee is now $19.99 a month, and it appears as though audiences are now trying to avoid the big fee by using illegal password sharing. IN a bid to counteract this, Netflix have announced that an account can add two more users for only $2 more.
As the streaming platform market continues to bulge, with huge players like HBO, Disney +, and more all upping the ante, the need to maximise what audience Netflix does have, is becoming more and more apparent.
With a whole host of price hikes set in place for the coming year, there are genuine fears that young people will turn more effectively to password-sharing websites to ensure their hard-earned cash goes elsewhere.
Ken Gerstein, vice president of sales at NAGRA and an advisor to firms on antipiracy measures, said the issue has now reached breaking point. He told The Sacramento Bee: “We’ve seen an increase over the past few years, especially under Covid, because more people were subscribing to streaming services versus traditional pay-TV.”
Is now the time to try and crack down on users sharing passwords or is Netflix simply reaping what they’ve sown over recent years?