Last year, Netflix made a big pivot. For years, it had no issue with users sharing passwords. In fact, it even celebrated password sharing on Twitter.
But last year, facing slowing subscriber growth (and actually declining subscriber numbers in North America) and a falling share price, Netflix changed its tune. It announced it was cracking down on password sharing. And almost a year later, we’re starting to see the results of that crackdown.
Good news for Netflix shareholders, it hasn’t turned users off Netflix. In fact, Netflix is enjoying its highest North American subscriber growth in at least four years.
Bad news for people who don’t want to pay for all of the streaming services. Netflix’s rivals, who all face their own password sharing challenges, will be watching this. And we should expect to see a similar push across the streaming industry.
The other big move Netflix made last year was to introduce an ad-supported tier, where users pay a lower subscription price but have to watch ads. Netflix have announced that this plan has attracted nearly 5 million subscribers in the first six months, which is expected to contribute to a strong financial result in the coming quarter.
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