Netflix’s Global Crackdown on Password Sharing Boosts Subscribers by 7.6 Million.

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In an ambitious move to combat password sharing, streaming giant Netflix implemented a crackdown in over 100 countries, including the United States, UK, France, Germany, Australia, Singapore, Mexico, and Brazil. This strategic maneuver has proven to be a game-changer, as the company gained a whopping 7.6 million new subscribers from January to June. This significant growth comes in stark contrast to the loss of 1.2 million subscribers experienced in the first half of 2022.

During Q2 of 2023, Netflix reported an impressive 8% year-on-year increase in global subscribers, setting the stage for even further expansion in the second half of the year. Notably, this novel feature has also been introduced in emerging markets, with India being a prime example, where experts predict continued growth.

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Under Netflix’s new policy, sharing an account outside of a single household is no longer permitted. However, family members residing together can still enjoy their favorite content across various devices, whether they are at home, on vacation, or on the go. The company has introduced convenient features like “Transfer Profile” and “Manage Access and Devices” to facilitate seamless account sharing within households, thereby putting an end to external account sharing practices.

Experts at Elara Capital praise this innovative approach, deeming it a key driver for subscription revenue growth in both developed and emerging nations. In markets where penetration is already high, and in regions where average revenue per user (ARPU) remains lower, this model offers a promising solution to foster a higher subscriber base.

Karan Taurani, Vice President of Elara Capital, commented on the potential impact of this strategy in India, suggesting that Indian broadcaster-led OTT giants might adopt a similar model to drive subscription revenue in a price-sensitive market. Given the increasing trend of premium content being offered for free, paid sharing emerges as an effective business model to attract a larger subscriber base.

During Q2CY23, Netflix’s revenue reached $8,187 million, exhibiting a 0.3% quarter-on-quarter growth and a 2.7% year-on-year increase. The company anticipates even more robust revenue growth in the latter half of CY23, benefitting from the full potential of paid sharing and continued steady growth in the ad-supported plan.

Netflix’s dedication to enhancing monetization is evident in its strategic initiatives like paid sharing and advertising. The implementation of these tactics is expected to generate more revenue from a larger user base, which can be reinvested to further enrich the Netflix experience for its members.

Read More- The government on Monday cleared the interest rate for Employees’ Provident Fund (EPF) accounts for the financial year 2022-23 on Monday.

Looking ahead, Netflix is gearing up to initiate its crackdown on account sharing in India and other markets, including Indonesia, Croatia, and Kenya, starting July 20. Additionally, in these markets where prices were recently cut and penetration is still relatively low, the company will no longer offer the extra member option. This move aims to streamline operations and capitalize on the untapped potential in these regions, propelling Netflix toward new heights.

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