Password sharing fees, ads and merchandise: Here’s what changes might be coming to Netflix

Netflix Password sharing

Netflix Password sharing, Netflix stated in late April that it had lost 200,000 customers in the first three months of 2022, the most in the previous ten years.

Many outside the business were surprised by Netflix’s loss of members, since they never expected such a successful service to fall so hard.

Following the statement, the company’s stock plummeted, dealing additional blow to the company.

Netflix was back in the news in May when it was revealed that the firm had laid off 150 people, or around 2% of its overall workforce.

Netflix is making smart changes in order to stay afloat, but what can we expect?

Password sharing restrictions

Netflix Password sharing

Following the loss of subscribers, Netflix declared that it will now crack down on password sharing, a practise that the business had previously ignored.

Subscribers will still be able to share accounts with other families, albeit at a higher fee, according to Netflix.

The company is currently testing this in select South American nations, where account users can share their subscriptions with up to two additional people living in separate households for as little as $3 per month.

During Netflix’s first quarterly earnings call of the year, CEO and Chairman Reed Hastings said, “We’re working on how to monetize sharing.”

“Over a hundred million homes have already chosen to use Netflix; they adore the service; we just need to be compensated in some way.”

However, M++*+**7ns Ulvestam, co-founder of Acast, the world’s largest podcast platform, believes that few people would be prepared to pay extra for Netflix, given the severe competition from Amazon Prime, Apple TV, and Disney +.

“I feel we’ve reached peak subscription,” he says Euronews. “People simply can’t afford any more memberships.”

When it comes to the subscription model, Ulvestam adds, “It’s unsustainable.” “Everyone wants to build the local “Squid Game” that can be converted into a global success, but because the production businesses are having so much fun, the consumers simply cannot pay all of the subscriptions they would like.”


Introducing advertisements

Another possibility is that Netflix will introduce a cheaper ad-supported membership.

“Advertising on low-end plans and having low-end prices with advertising is one method to increase the price spread,” Hastings added.

According to Hastings, this plan will provide customers the option of paying more for an ad-free subscription or saving money by tolerating commercials in their shows and flicks.

According to the Additional York Times, this new tier could be implemented in the last three months of the year, according to a letter shared by Netflix management with staff in May 2022.

HBO and Hulu are two large streaming firms that already offer ad-supported subscriptions.

Its content is licenced

Netflix Password sharing

Netflix may enhance its revenue by licencing its material, according to Xander Ross, co-founder of film and television public relations firm Percy & Warren.

As with the famous series ‘Stranger Things,’ the company used to sell its items through separate arrangements with shops like Target. However, in 2021, it made the decision to create its own internet store and sell straight to clients.

“Netflix isn’t big on merchandise licencing,” Ross explains. “When you compare [Netflix] to what other streamers like Disney are doing, it’s simply not comparable.”

“Disney makes money off of its content in a variety of ways, from theme parks to toys, food to clothing. Meanwhile, Amazon is attracting users to its platform in order to promote its shopping platform, and Netflix is strictly an entertainment service, so it is unable to capitalise on the success of its products through merchandise or offer a variety of services to attract subscribers.”

But, according to Ross, Netflix could simply make this change if it so desired. Although monetizing its items would have no direct influence on users’ wallets, it may provide the corporation with more revenue.

Changes in content

Netflix’s unanticipated crisis may push the streaming behemoth to reconsider its content strategy, either by lowering production costs or being more choosy about the content they licence on the site.

It’s difficult to determine which way such adjustments would go: Netflix may opt to cut back on making expensive, original films and TV shows, which would undoubtedly anger viewers, or it could enhance its offering by focusing more on what its consumers want, according to Ross.


“Netflix is so ready to play judge, juror, and executioner on series it deems to be duds because they don’t have large followings from the start – sometimes they are really victims of its algorithm anyhow and might have flown with the correct targeting push behind,” Ross says.

“People are ranting on social media over a show they enjoyed being cancelled after only one season.” They focus on volume and numbers rather than creating communities, failing quickly and moving on.”

Netflix’s CEO Bela Bajaria remarked in 2020, after popular shows including ‘GLOW,’ ‘Chilling Adventures of Sabrina,’ and ‘The Dark Crystal: Age of Resistance’ were discontinued, generating outrage among fans, that “it’s always unpleasant to cancel a show.”

She defended Netflix, claiming that it did not cancel more shows than other networks and platforms, with a 67 percent renewal rate.

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