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Netflix growth slows as platform cracks down on password sharing

July 19, 2024
in Technology
Netflix growth slows as platform cracks down on password sharing
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Netflix subscription plans down

It’s been a while since Netflix began cracking down on password sharing, so that only people in the same location can share a Netflix account. Although the platform has continued to grow despite this, the number of new subscribers has been falling in recent quarters – which could be a result of the anti-sharing measures.

As reported by Reuters, data from LSEG revealed that Netflix’s growth has been slowing since the first quarter of 2024. The platform gained 4.82 million subscribers in the second quarter, which would be the lowest number since the first quarter of 2023. For comparison, Netflix gained almost 15 million subscribers in the fourth quarter of 2023.

However, although the company is having a harder time gaining new subscribers, Netflix is also successfully increasing its revenue from advertising. That’s because the company is pushing its most affordable ad-based plan, which costs $6.99 per month in the US.

Earlier this month, Netflix phased out its most affordable ad-free plan, which cost $11.99 per month. Netflix users who want to get rid of ads now must upgrade to the Standard plan, which costs $15.49 per month. The 4K plan, which is also ad-free, costs $22.99 per month.

LSEG estimates that the company’s ad revenue more than doubled in the June quarter, reaching $9.53 billion – the highest growth since the second quarter of 2021.

Netflix isn’t the only platform investing in new ad-based plans. Disney+ also introduced a cheaper plan with ads in 2022, while it started cracking down on password sharing earlier this year.

Apple TV+

According to rumors, Apple TV+ is also considering launching an ad-supported plan. The company recently increased the subscription price from $6.99 per month to $9.99 per month in the US.

In the last quarter, Apple TV+ overtook Paramount+ in the US streaming market share and is now getting closer to Hulu and Disney+.

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FTC: We use income earning auto affiliate links. More.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : 9to5Mac – https://9to5mac.com/2024/07/18/netflix-growth-slows-password-sharing/

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