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Netflix password controls are backfiring

by on27 April 2023

Lost a million Spanish subscribers 

Netflix's moves to increase subscribers by clamping down on password controls are backfiring as customers are leaving the streaming outfit in droves.

 Netflix lost more than one million users in Spain in the first three months of 2023 according to market research group Kantar, a sign that the streaming giant's crackdown on password-sharing could backfire. 

Spain was one of Netflix's first markets to introduce a monthly fee for users who shared their log-in details with another household and technical measures to detect such sharing. The move was linked to a fall in users of more than a million, two thirds of whom were using someone else's password, according to Kantar's research, which is based on surveys of household streaming habits.

Dominic Sunnebo, global insight director at Kantar's Worldpanel Division said that losing a million users, even if most weren't paid subscribers, would be a blow to Netflix in terms of word of mouth recommendation for its shows and service.

Subscription cancellations in the first quarter tripled compared to the previous period, according to Kantar's research.

Of all remaining Netflix subscribers in Spain, one-tenth said they planned to unsubscribe in the second quarter. Spanish subscribers were charged $6.57 a month to add members outside their household. A similar fee was introduced in Portugal, Canada and New Zealand after a roll-out in several Latin American countries.

Last modified on 27 April 2023
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