News JVTech Netflix will no longer leave you alone: you will pay
Published on 23/12/2022 at 12:01
After launching a subscription with ads, it’s time to take stock for Netflix. 2022 is still not the year of profitability and the streaming platform should now tackle an issue that is undermining its finances: password sharing. Get ready, it’s coming very soon.
The flop of the new Netflix subscription, still in search of profitability
It doesn’t seem like that, but Netflix is struggling. Yes, the streaming service counts more than 220 million subscribers. Yes, Netflix is the undisputed leader in its market. But what do you want, producing and hosting thousands of hours of content is extremely expensive. It’s sad to say, but, in 2022, Netflix is still not profitable.
The platform that makes TUDUM can no longer afford to rely solely on the growth of its number of subscribers, especially in this period of high inflation. To finally succeed in earning money, no choice, you have to find new ways to make it.
This is how on November 5, 2022, Netflix inaugurated a whole new subscription formula… with ads. baptized “Essential with pubs”, this subscription only costs €5.99 per month, i.e. 30% less than the “Essential” formula already in place for a long time. Through ad-supported low-cost, Netflix hoped to attract tens of millions of new people around the world.
A month and a half after the launch of “Netflix Essential with ads”, it is already time to take stock. The research firm Antenna, specialist on the subject, is clear: the account is not there. Despite a launch with great fanfare, the new Netflix subscription would have weighed only 9% of registrations for the whole of November in the United States. Worse: half of these registrations would come from people already subscribed who would have decided to go down in price range.
Netflix commented on these figures following their publication in the prestigious Wall Street Journal. The platform disputes them and speaks of “inaccuracies”. Netflix says it is satisfied with the first results of its new subscription, but it is hard to believe.
Netflix no longer wants you to share your passwords
Since a formula with ads cannot guarantee Netflix’s profitability for the next year, the company has decided to change its tune and tackling another major problem: sharing passwords. According to Reed Hastings, the co-CEO of Netflix, there would be 100 million peoples who would benefit from the streaming service without paying for it, therefore using the password of a loved one. This represents a monstrous shortfall.
To compensate for this loss of revenue, Netflix should go on the offensive very soon. Still according to the Wall Street Journal, things will change from the very beginning of 2023 for people who share their password.
Get ready ! Before long, Netflix should tighten the screw and take a closer look your geolocation, your IP addresses, and generally all the activity of your account. The goal would be to track any password sharing to a person not living under the same roof as you.
