Netflix said on Tuesday that it lost over 970,000 subscribers from April through June; however, there is a silver lining for the streaming giant. Netflix had estimated that it would lose about 2 million subscribers.
Netflix averted the worst-case scenario projected by the company and has predicted that in the months to come, it would return to customer growth starting in the third quarter.
Netflix shares, which had fallen roughly 67 percent earlier this year on concerns about future growth, rose 7 percent in after-hours trade following Netflix’s revelations.
After years of red-hot growth, Netflix’s fortunes changed as rivals, including Walt Disney Co, Warner Bros Discovery, and Apple Inc, invested heavily in their streaming services. The reason why Netflix hasn’t lost as many subscribers as it had hoped for maybe because they had announced that they would come up with a few cheaper, ad-supported subscriptions.
A few weeks ago, Netflix announced that they would partner up with Microsoft for their ad services and launch the ad-supported tier sometime by the end of the year or early 2023.
Meanwhile, Netflix has started tackling one of the significant reasons why it has begun losing subscribers – password sharing. Netflix is experimenting with a new method of payment from freeloaders. According to a report by Bloomberg, the company is introducing a feature that allows customers to legitimately enable access from a second home for an additional monthly fee in five Latin American nations.
Netflix will get an “add a home” feature available in Argentina, the Dominican Republic, El Salvador, Guatemala, and Honduras starting in August.
According to the report, anyone in each additional home will then be able to stream Netflix on any device at a price that is less expensive than full standalone membership.
This comes after the streaming service launched a “add extra member” feature in Chile, Costa Rica, and Peru that allows users to pay a monthly fee to grant access to Netflix to people outside their households.
Customers with the Basic plan may add one additional home; those with the Standard method may buy up to two other houses, and subscribers to the Premium tier may buy up to three different homes.
Customers can add up to two Extra Member accounts for an additional $2-$3 (roughly Rs. 160 – Rs. 240) per month each in Netflix’s tests in Chile, Costa Rica, and Peru. Rather than the actual walls of a home, Netflix’s password-sharing policies apply to everyone in a customer’s household.