Netflix cracks down on password sharing - and may start showing adverts
dailyrecord.co.ukNetflix has lost subscribers for the first time in 10 years, causing the platform to limit password sharing and create a cheaper subscription funded by adverts.
The streaming service, which has long resisted the changes, announced the move late on Tuesday.Although it has 220 million subscribers, an estimated additional 100 million households access the site through account sharing.Rivals such as Apple and Walt Disney were able to cut into Netflix's viewership as binge-watching surged during lockdowns.As for the cheaper ad-supported tier, the firm offered no additional information how it would work or how much it would cost.Another rival, Hulu, has long offered a subscription with ads.During the latest quarter from January to March, its customer base dropped by 200,00 subscribers - the first time ever since the streaming giant became widely available in 2014.The drop stemmed in part from Netflix's decision to withdraw from Russia in protest at the war against Ukraine, resulting in a loss of 700,000 subscribers.Netflix projected a loss of another two million subscribers in the current April to June quarter.
The erosion, coming off a year of progressively slower growth, has rattled another key constituency for Netflix — its shareholders.After revealing its disappointing performance, Netflix shares plunged by more than 25 percent in extended trading.If the stock drop extends into Wednesday's regular trading session, Netflix shares will have lost more than half of their value so far this year — wiping out about 150 billion dollars (£115 billion) in shareholder wealth in less than four months.If, like us, you love a good dose of celebrity gossip then we've got you covered.From Lorraine Kelly and Janey Godley to Gordon Ramsay
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