Netflix takes aim at password sharing, ads

Netflix tries to rebound from losing subscribers

Streaming giant Netflix posted its worst day in more than a decade, as its stock plummeted after an unexpected drop in subscribers. Now, the company is considering changes to its platform.

When it comes to sharing Netflix passwords the streaming video company estimates more than 30 million U.S. and Canadian households share passwords with family or friends.

Lance Ulanoff, U.S. Editor in Chief with Tech Radar says Netflix lost some 200,000 paid subscribers during the January to March quarter this year - despite more people returning to work post-COVID and inflation. But he believes the streaming service will make up for it in the long run.

"Netflix is preparing to crack down on password sharing to get more users, get a lot more revenue which of course that money does drive new programming," he said. "They still have 200 million paid subscribers and there’s 100 million people watching who are watching Netflix around the Netflix around the world not paying for it at all."

Netflix has allowed what they call generous out-of-home password sharing because it helped get users hooked on the service. But with competition from other streamers like Disney and Apple TV +, charging a discounted price to add another household is a necessary move. A trial program outside the U.S. has so far proven to be successful.

Netflix also revealed they’re considering an ad-supported version of the streaming service to boost the company's growth. Users would pay less but have to sit through commercials.

There’s no word on when commercials would come into play or a price for subscribers to pay.