To contain the vertiginous fall in its collection, Netflix decided to take a drastic measure to recover the financial numbers from before. The streaming platform decided to anticipate the arrival of advertising and block password sharing. In a statement issued among the company’s employees, the company warned that the advertising layer on the service will be introduced between October and December this year, according to The New York Times.
In another decision by the company, Netflix will begin to prevent the sharing of passwords at the end of this year, according to the same note written by the company’s executives.
“All major streaming companies, excluding Apple, have announced or advertised an ad-supported service,” the Netflix note read. “For good reason, people want lower-priced options,” he added.
Netflix loses high value because of piracy and password sharing
Netflix has lost about $6.25 billion annually to e-commerce businesses that sell illegal password sharing and people sharing passwords.
Not coincidentally, the streaming service counterattacked, allowing users to add two more if they pay $2 in countries like Costa Rica, Peru and Chile, according to the OnScreen published first hand.
According to a report released, up to 36% of Netflix users share their password with at least one family member and 13% with a friend with whom they do not live in the same house.
In addition, Netflix continues to raise its prices in most parts of the world. In Brazil, there was a readjustment of more than 20% in mid-2021, and the platform also increased the cost in other countries to try to raise more. Despite the company’s attempts, Netflix is expected to lose more than 2 million subscribers in the second quarter of 2022.