Netflix announced in December 2018 that it would cease password sharing by 2023 and introduce an advertising-supported tier for its online viewing platform. Now, in an interview with Bloomberg, Ted Sarandos and Greg Peters, Netflix’s two new co-chief executive officers (CEOs), have elaborated on what the end of password sharing will entail.
According to Peters, the corporation would not jeopardise consumer experience while implementing a “gradual strategy” to control password sharing. However, he continued, “the great majority of people who do not now pay for Netflix will be required to do so.” It reaches a relatively stable posture.”
Additionally, he acknowledged that this will not be “a universally popular type of event” and that the streaming service will certainly encounter “dissatisfied clients.” The CEOs emphasised that they intend to boost the company’s customer base by 15 to 20 million, with a particular focus on India. Moreover, it is true that password sharing hinders Netflix’s membership development, which has become a difficulty due to increasing competition.
When asked how many of the 100 million individuals who share passwords will eventually start paying for their own Netflix account, Peters stated that they hope to woo them all back by providing weekly content like “Glass Onion.”
Advertising is another area of attention for Netflix, and the company launched an ad-supported plan for $6.99 per month in Australia, Brazil, Britain, Canada, France, Germany, Italy, Japan, South Korea, Mexico, Spain, and the United States last year.
However, when questioned if Netflix “underdelivers to advertising-supported viewers,” the two disputed the claim. According to Peters, they have “knocked this (the ad-supported strategy) out of the park” and will “spend years building this out.” The corporation regards the ‘basic with advertisements’ plan as a supplement to the total plan package, and it caters to “price-conscious customers.” It is unclear when Netflix will launch the advertisement-supported option in India. On the Indian market, competitors like Disney+Hotstart already have advertising-based strategies.
Netflix has already tested password sharing in Latin American nations like Argentina, El Salvador, Guatemala, Honduras, and the Dominican Republic. Customers must pay an additional $3 fee if they use their Netflix account outside their permanent residence for more than two weeks. It is unknown when this will be implemented in other nations, but it will likely occur this year.