Netflix hints at password-sharing clampdown after 200,000 leave streaming service
The streaming giant fear they could lose a further two million customers in the coming months
Netflix has hinted that it will be clamping down on customers sharing passwords.
This comes after the number of subscribers on the streaming service fell by 200,000 in the first quarter of 2022.
The reduction comes after it increased prices in several countries, while it also suspended a million users in Russia over the Ukraine invasion.
Speaking to shareholders on Tuesday, Netflix warned that a further two million customers were expected to leave during the second quarter.
It added: “Our revenue growth has slowed considerably.
"Our relatively high household penetration - when including the large number of households sharing accounts - combined with competition, is creating revenue growth headwinds."
As a result, Netflix now could look to preventing people from sharing their passwords with others, with an estimated 100 million households currently doing just that.
Netflix CEO Reed Hastings, who previously played down the issue, now says the firm are “working super hard on it”.
He said: "When we were growing fast, it wasn't a high priority to work on (account sharing). And now we're working super hard on it.”
But analyst Dominic Sunnebo has issued a warning to the firm that the plan may not be as successful as they hope.
He said: "Converting even a small fraction to full paying customers is not an easy task, particularly so when consumers are looking for ways to save money, not spend more.
"If the schemes to counter password sharing move too fast and too aggressively, it also risks alienating a potential future audience - many who password-share beyond the household are not actually aware they're breaking the terms of their subscription."