Netflix Co-CEO Greg Peters Says Password-Sharing Crackdown Has Not Hurt Viewership, Citing Internal Data That “Cuts Through The Noise” About The Policy Shift
18.04.2024 - 23:40
/ deadline.com
Netflix Co-CEO Greg Peters says internal viewership data from before and after the implementation of paid password sharing shows the new policy has not turned off viewers, as some had initially predicted it would.
The company on Thursday reported a year-over-yearjump of 9.3 million subscribers in the first quarter, in part due to the password policy that has put a price on sharing login credentials. The move has been a 180 from the free sharing ethos in the company’s start-up phase that eventually became a puckish tool for promotion. The new ad-supported tier, which costs less than paying for an extra account, has also benefited from the new password setup, helping Netflix to reach almost 270 million global subscribers.
Speaking on the company’s earnings call, Peters described internal data from “owner households,” meaning those not affected by the new policy. In the first quarter, he said, viewing by those subscribers was “steady” with the same period in 2023. “That’s a pretty good sign that our engagement is holding up, and it sort of cuts through the noise around paid sharing,” he said.
In 2021 and ’22, as the company was ramping up its efforts to force customers sharing passwords to pay for that privilege, some observers on Wall Street and in the tech sector predicted trouble. Some described it as a desperate measure taken at a time when the company was on its back foot, with subscriber levels dipping for the first time in a decade and a raft of well-funded new competitors in the market. Even the company’s execs said they would need to proceed with caution, lest they alienate customers and send churn rates spiking.
Peters acknowledged that in the aggregate, the policy would cause a near-term dip in viewing. “We’re
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