😍 2022-07-20 00:19:12 – Paris/France.
- Writing
- BBC News World
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Legend,
Netflix is grappling with losing subscribers.
Netflix reported losing 970 subscribers between April and June, a result that bolsters the company's decision to expand user billing for account sharing as it seeks new ways to earn money after years of massive growth.
The content platform said it would ask customers in five Latin American countries to pay US$ 2,99 extra per month to add a "second home" to your accounts.
And he warned that the restriction on password sharing would spread around the world.
The measure will come into effect from August in Argentina, Honduras, Guatemala, El Salvador and the Dominican Republic.
drop in subscribers
Netflix had warned in April that it expected to lose two people million customers this second quarter, an announcement that shocked Wall Street and cast doubt on its long-term growth prospects.
However, the announcement of the results expected on Tuesday reflects that defections they weren't so pronounced as the company feared, thanks to the new season of stranger thingswhich helped contain the leak.
Additionally, the company expects new customer additions between July and September to be one million.
For its part, Wall Street expects 1,84 million new users for the next quarter.
Earlier this year, Netflix announced its first drop in subscribers in more than a decade, a sea change for a company that for years has seen a seemingly unstoppable growthwhich has revolutionized the consumption of entertainment, shaking up the traditional professions of television and cinema.
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Legend,
Netflix's growth seemed unstoppable.
Its position as a global giant was consolidated when the pandemic in 2020 and people, stuck at home with few entertainment options, flocked to his shows.
However, as pre-pandemic habits return, Netflix struggles to attract new subscriptions and retain existing members.
price increase
Price hikes have prompted users in countries like the US and UK to cancel their subscriptions, while a host of new entrants like Disney are prompting audiences in the US and elsewhere to switch platforms .
Research suggests people are increasingly signing up to watch specific programs then they cancel their accounts.
It's unclear how families will respond to the demand for more money for shared accounts.
In March, Netflix announced that it would charge households in certain countries, such as Chile, for adding a " additional member"
People can edit your accounts to remove additional homes at any time, the company reported.
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Legend,
The company announced its first drop in subscribers in more than a decade in early 2022.
shared accounts
Netflix said it will experiment with different ways to showcase the new collections before launching them globally later this year.
When all was well, Netflix could afford to ignore account sharingbut is now trying to take advantage of password-sharers, even at the risk of alienating some, said Guy Bisson, chief executive of Ampere Analysis.
"I think they'll probably gain more than they lose doing this," he said. “You can implement it sequential and gradual manner and make sure it has the effect they are hoping for.
In addition to trying to make more money from existing audiences with a crackdown on password sharing, Netflix said it will experiment with a lower-cost service that incorporates advertising.
Netflix is still the service diffusion dominant in the world, with nearly 221 millions of subscribers.
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