The latest Q4 2022 earnings report was not as expected for
Netflix
.
The economic losses led the series and film platform to re-implement its extra payment function for sharing the password, the same one that it carried out in Argentina and several Latin American countries.
Netflix will begin cracking down on cross-household password sharing in March, which is when its first-quarter 2023 phase ends, according to the US site Techradar.
The announcement comes after the departure of its CEO, Reed Hastings.
Originally, the big "N" was intended to implement the measure by the end of 2022.
While they missed the deadline, that didn't stop them from continuing with their plans to prevent their users from sharing their password.
Essentially, the streaming platform claims that this mechanic
weakens its position against Disney Plus, Amazon Prime Video or HBO Max
.
Or, according to its terms, the widespread sharing of passwords among millions of people "undermines our long-term ability to invest in and improve" its platform.
The Netflix plan that failed in Argentina
The scheme that they plan to promote globally
had its trial phase in Argentina
, El Salvador, Guatemala, Honduras and the Dominican Republic, but it did not work well among Latin American subscribers.
Netflix's attempts to persuade users to sign up for its "Add a House" feature didn't help either.
The add-on, which allows customers to add separate households, and all of their occupants, to their accounts for a small fee further confuses matters.
To ensure that the new terms of service are met, Netflix will check through the connection IP of the device with which you log in: this way you will know if they share the same password between multiple users.
When connecting to the Internet from a device, Netflix identifies the IP number and the network to which it has connected.
Also, to verify this, the platform will send a link to the email address or phone number associated with the primary owner of the account.
However, the problems caused by that function of "Add a House" did not force the company to rethink the commercial strategy.
Netflix still intends to roll out its payshare feature more widely in 2023, even if some users balk at it.
Netflix grows in subscribers
Reed Hastings, outgoing CEO of Netflix.
AFP photo
At the same time that it plans to collect more money from its subscribers in the coming months, Netflix said on Thursday that it increased its subscriber base by 230.75 million, far exceeding its forecasts and market expectations.
The streaming service lost nearly
1.2 million subscribers in the first half
.
However, it started attracting millions again in the third quarter, and then gained 7.66 million new subscribers between October and December, much more than expected.
The platform benefited from the new seasons of hit series such as "The Crown", about the British royal family, and "Emily in Paris", but also from new programmes, such as the documentary series "Harry & Meghan" and the popular series "Wednesday".
But Netflix remains "under severe pressure to correct course and deliver better results for its shareholders," said Paul Verna, an analyst at Insider intelligence, after "its shares lost more than 50% of their value in 2022."
In the fourth quarter, the Californian company entered 7,850 million dollars, but only generated 55 million net profit, well below the 257 million expected by the market.
Netflix took steps last year to generate new revenue streams, which should pay off this year.
Specifically, the platform launched a new, cheaper, ad-supported subscription in November, a less glamorous alternative that it had long shunned.
"This is the beginning of a turning point for the company," Verna said.
"We expect a relatively weak start, with advertising revenue of $830 million in 2023."
look also
Reed Hastings resigns as Netflix CEO
How Netflix will make sure users pay for shared accounts
