Netflix is going to end the password sharing system in the coming months. The company, in its earnings report today, said that it expects to roll out paid sharing “more broadly later in Q1’23.” Netflix hopes that this will “result in a very different quarterly paid net adds pattern in 2023, with paid net adds likely to be greater in Q2’23 than in Q1’23.”
The company notes that the widespread Netflix account sharing in more than 100illion households causes a dent to Netflix’s long-term ability to invest in and improve the business. The company expects paid sharing and ads offering will help reaccelerate the revenue growth.
With paid sharing, Netflix subscribers will have an option to share passwords with their loved ones by paying an extra charge. Under paid sharing system, Netflix will offer “add a home” feature. Subscriber will pay for each home that he or she buys for his family and friends. Subscribers can access this even while travelling.
Netflix also announces the stepping down of Reed Hastings as company’s CEO. He is now the executive chairman passing on the CEO baton to Ted Sarandos who will be assisted by Greg Peters as his co-CEO. The company has also made Bela Bajaria- formerly Head of Global TV as the new Chief Content Officer and Scott Stuber the Chairman of Netflix Film.
“For myself, I’ll be helping Greg and Ted, and, like any good Chairman, be a bridge from the board to our co-CEOs. I’ll also be spending more time on philanthropy, and remain very focused on Netflix stock doing well,” writes Hastings who ran the company for 25 years.
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