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Sharing Netflix passwords with your loved ones might prove costly for you!
According to the report, Netflix has cited sharing passwords as one of the causes behind its slow growth. The OTT giant added 24.1 lakh new customers in the third quarter, exceeding forecasts. However, Netflix is still on a slow growth in the recent years, Bloomberg reported
Do you share your Netflix password with your loved ones who wish to watch content on the OTT platform? This practice might prove costly to you. The video streaming giant will now charge the users for sharing their password, Hindustan Times business website Livemint reported.
According to the report, Netflix has cited sharing passwords as one of the causes behind its slow growth. The OTT giant added 24.1 lakh new customers in the third quarter, exceeding forecasts. However, Netflix is still on a slow growth in the recent years, Bloomberg reported. It lost 12 lakh customers during the first half of 2022. The company's chief financial officer Spencer Neumann said the company is still not growing as fast as it liked.
During the quarterly earnings briefing, Netflix said it would charge users additional fees from those subscribers who are sharing their login credentials from 2023 onwards.
Although the OTT platform has not revealed the fees, it is expected the price will be around $3-$4. The users who don't wish to pay any extra fees can use Netflix's migration tool which helps them to transfer their profiles.
The OTT platform, which has blockbuster titles like Narcos, Squid Games, House of Cards to a name a few, has been witnessing losses in revenue. In its quarterly report, Netflix said that streaming is the future of entertainment as its rivals are investing billions of dollars to scale their services, the Livemint report added.
Conceding that it is difficult to build a large and profitable streaming business, Netflix said that all the rivals are losing money on streaming as the aggregate annual direct operating losses this year could be more than $10 billion as compared to its losses of $5-$6 billion.
