Netflix‘s new policy limiting account sharing would have caused the company to lose around 1 million users in Spain, according to the study conducted by the Kantar Group. The change is already in force in some countries, it should also be applied in other areas even if it is still being analyzed by the platform.
Kantar research shows that Netflix lost at least 1 million users in Spain in the first three months of 2023 and the reason for this drop is precisely linked to the new guidelines for sharing passwords applied in the country since February of this year, with the fee of 5.99 euros to share access with a user outside your family group.
Netflix requires that subscribers pay additional fees to share their login information with friends, family, and others. In countries such as Canada, Portugal, Spain, and New Zealand this rule is already in place. For now, Netflix has postponed the plan to extend the end of password sharing to other countries to analyze some issues, including for example the high number of cancellations recorded in Spain. However, it is recent news that, in order to increase the number of subscribers, the company plans to accelerate by rolling out paid sharing in other regions starting this summer.
Netflix defends its new guidelines while admitting that initial reactions have not been positive. After all, the company estimates that around 100 million users worldwide use other people’s login data and do not pay for streaming. The drop would therefore only be a temporary matter before users decide to sign up for their own account.
Despite his optimism, other factors that could affect the company’s forecasts must also be considered, first of all the possibility of choosing other services.