Netflix is ​​not having a good time. After the presentation of the results, the company announced more than 200,000 user losses in a single quarter and expects more than 2 million losses. This caused its value in the stock market to drop by up to 25%. It started to recover after an hour.

Netflix prices haven’t stopped rising lately, and even so, for many users it was still worth the expense, because the vast majority of them share their accounts among several friends and family members. Well, exactly this popular app seems to be coming to an end, at least for free.

We’ve been listening for a long time, but given the results in the last quarters, this time seems more serious than ever. Actually, ending shared accounts may be just the beginningConsidering that there is even a possible version of Netflix with ads that is cheaper and could be ready in about two years.

Goodbye to account sharing

Netflix has released a statement. Explains why he was forced to put a card on the subject your shared accounts

Sharing has probably fueled our growth by getting more people to use and enjoy Netflix. We’ve always tried to make it easy to share in a member’s home, with features like profiles and multicast. Despite [estas opciones para compartir] They’ve become so popular, creating confusion about when and how Netflix can be shared with other households.

As it turns out, they attribute their slow growth to this type of app, so it looks like they’re taking action for the streaming service. Do not share accounts outside of the same household, something that was commented on a long time ago. In the statement, they also explain how it affects paying users.

“Account share by percentage of our paid subscribers hasn’t changed much over the years, [la ralentización del ritmo de adopción de la banda ancha y la televisión conectada]This means that subscriber growth is more difficult in many markets, an issue masked by our growth during the COVID-19 pandemic.”

Sub-accounts, tool to monetize more users

The Netflix plan is in sub accounts as they have already launched in some countries. In Chile, Costa Rica, and Peru, an option has been enabled to create “sub-accounts” that allow. add extra member to subscription There may be people who do not live at the same address.

These subaccounts will cost between $2 and $3. per sub-account for what the current plan subscription is. It’s about half what it cost us to sign up with the basic subscription, although we get a higher quality if we’re dealing with one of the most generous subscriptions.

The company commented Does not use GPS connectionas said months ago, but Your own detection method based on IP addresses devices to which we connect to the service.

Like this, Netflix wants to increase revenue and cut spendingbecause it announced a budget cut for the production of its own content.

2023 will be the year when the measures will begin to be implemented and test whether the action plan has achieved the expected results. According to consulting firm Cowen & Co., if Netflix distributes this system globally, could increase its annual revenue by $1.6 billion.

The truth is that Netflix is ​​one of the most popular streaming services, both on Mi TV, whose remote even includes a specific button for playback, and on Mi Stick, among others.

More info | Netflix, Diversity.