Account sharing: Netflix is running out of viewers

At the beginning of the year, Netflix also started to stop sharing access data in Europe. Spain was one of the first European countries to introduce such additional fees. An evaluation shows that the number of viewers at Netflix then dropped dramatically – and hardly anyone is willing to pay for the service.

A million people lost

The market research firm Kantar has studied the impact of Netflix’s introduction of account sharing fees in Spain. The data shows that the company’s strategy of turning free watchers into paying customers is not working. In the first quarter of the current year, the number of viewers at Netflix decreased by one million. This is largely due to the lockout of all those who previously watched for free. According to Kantar, this group accounts for two-thirds of the one million people who have left Netflix. As a result, the loss of viewers has hardly had a direct financial impact on Netflix.

For the company, however, the news is likely to be demotivating. The total number of viewers is interesting for potential advertising partners, for example. In addition, the loss is likely to result in Netflix receiving less attention from the general public, which in turn is likely to affect the recruitment of new subscribers. Netflix had hoped that a large proportion of all those who lose their free access would start paying for the service. However, apparently hardly anyone is willing to do that.

Ten percent want to cancel

There is also another problem for Netflix: according to Kantar, ten percent of Netflix’s paying customers want to cancel their subscription in the current quarter. Compared to the usual fluctuation at Netflix, this is a very high value. It could be due to general dissatisfaction with the company’s policy, but also to the fact that locking out other viewers eliminates the possibility of exchanging information about movies and series. Furthermore, some Netflix customers may have demanded a share of the subscription costs from their fellow viewers – and now have to pay the full price accordingly. In these cases, Netflix’s new option to add more people to the list is not very attractive, as the subscription price increases noticeably compared to the previous price.

It remains to be seen whether Netflix will adjust its corporate policy. Most recently, the streaming service announced that it would end free account sharing in other countries, including Germany, by the end of the current quarter.