In an unexpected move, the Netflix platform announced in a statement, Wednesday, March 16, 2022, that its users were prevented from sharing the password of their accounts on the platform with people who live outside the user’s home, in a move that may be aimed at increasing the number of users, especially After the recent losses to the platform.
The global platform confirmed, through a statement published on its official website, that it would impose additional fees for those wishing to share their passwords, and indicated that they would have to pay an additional $3 per month.
Netflix considers that the behavior of some, by sharing their password with others, undermines its ability to "invest in great new TV shows and movies" to offer to subscribers.
While reports revealed that the famous digital viewing platform, Netflix, is considering creating a free version of the platform that contains ads, and this comes as part of its plan to expand its spread and increase the number of views, in addition to achieving greater profit, especially after the financial losses that the platform has suffered recently.
It is noteworthy that earlier the company announced its readiness for the first time to release video games to its users; The platform said it had appointed former executives from Electronic Arts and Facebook to oversee the new project.
The company added that Mike Verdo, who was a former vice president of Facebook responsible for developing games, will join it to develop the network, and the American site said that the company is considering providing video games on its platform next year, and it will provide games to all its participants and they will not have to pay new fees.
And Netflix began looking for employees specialized in game development, as it seeks to build its own team as soon as possible.
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The movie platform is seeking to restore its subscribers, as Netflix shares fell sharply, last year, despite the profits that the company achieved in the second quarter of the current fiscal year in the midst of the Corona virus pandemic, after it succeeded in adding millions of new subscribers to its platform, according to a report. For the British newspaper The Guardian .
With the start of the home quarantine due to Corona, the company announced that it had added 10.09 million new subscriptions, above its expectations; Because people were forced to stay in their homes as a result of the quarantine measures imposed by the spread of the new Corona virus, which prompted them to follow its programs in the absence of direct content and the closure of cinema halls.
The company's revenue also rose 24.9% to $6.15 billion in the second quarter, beating estimates of $6.08 billion.
However, the company expected subscriber numbers to fall below estimated levels during the third quarter, an early sign that the recovery that the general shutdown has brought to the broadcasting industry may be waning with the easing of stay-at-home orders and higher rates of layoffs and vacations across various industries. Those unfortunate predictions caused the company's shares to drop 10% after hours of trading.
Despite this, the company remains firmly on the throne of broadcasting platforms, and Eric Hagstrom, an analyst at eMarketer, says it is expected to remain so. Netflix is close to having 453.5 million subscribers worldwide in 2020, according to eMarketer forecasts, up 9.1% from last year.
“The pandemic and the general closure that has accompanied it has significantly accelerated the transition from traditional TV to streaming platforms, and looking to the future, even as lockdown measures ease and other competitors start developing their services, Netflix will continue to strengthen its position as the number one entertainment destination,” Hagstrom said.
According to eMarketer figures, this year Netflix will reach 72% of the viewership market, Amazon Prime will reach 60%, and Hulu will reach 38.9% of it.