No crackdown on Netflix password sharing in India just yet
Netflix said its subscriber growth has been impacted in markets where anti-password sharing initiatives are already rolled out. Latin America and Canada are two such examples.
Posting its quarterly results on Tuesday, video streaming firm revealed it is delaying its crackdown on password sharing to the second quarter of 2023. While it has already rolled out measures against password sharing in some regions, its plans to end sharing in regions like India are pushed.
The American media company said in a statement that the delay in password crackdown will result in a fall in expected membership growth and revenue benefit in Q3 rather than Q2, but it believes it will result in a better longer term outcome.
It also added that paid sharing could increase revenue in the future.
However, as per reports, Netflix said its subscriber growth has already been impacted in markets where such initiatives are already rolled out. Latin America and Canada are among some markets where Netflix has cracked down on password sharing.
According to the company, over 100 million households share accounts, amounting to around 43% of its user base.
Posting mixed financial results on Tuesday, the firm also missed subscriber estimates, and also announced it is winding down its legacy DVD mailing business.
It reported first quarter results comprising revenue of $8.16 billion (against Wall Street estimates of $8.18 billion), Earnings per Share (EPS) of $2.88 (against estimates of $2.86), and new subscribers totalling 1.75 million (versus estimates of 2.3 million).
Edited by Megha Reddy