Try unlimited access
Try full digital access and see why over 1 million readers subscribe to the FT
$1 for 4 weeks
Explore our subscriptions
Find the plan that suits you best.
Premium access for businesses and educational institutions.
Netflix, the world’s leading streaming service, has recently warned its investors that its revenue growth will slow down in the coming months as the company postpones its planned crackdown on accounts that share their passwords.
In recent years, Netflix has allowed customers to share their accounts among other family members and friends, enabling tens of millions of households to save money on subscription fees. This, however, has cost Netflix billions in lost subscriptions and prompted the company to set in motion a plan to curb account sharing.
The plan requires current users to log in from different devices, so as to ensure that only a single person is accessing the account at any one time. As part of this, Netflix was planning to roll out tools to monitor suspicious account usage.
However, these plans have now been shelved, at least temporarily, as the company seeks to focus its resources on developing new and more engaging content, as well as to create a more attractive value proposition for its customers.
At the same time, Netflix announced that US subscription growth has slowed down for this quarter, and warned investors not to expect significant closure of the gap in upcoming months.
The news surely puts a damper on the company’s investors, who were expecting lucrative returns in the near future. Now, however, they will have to wait and see how the streaming giant’s strategic changes impact its profits and losses in the near future.