Netflix recently started imposing a radical decision that took a lot of people by surprise, and that's because it came completely out of nowhere and raises many question marks for a lot of people. More precisely, those from Netflix have begun to impose a measure that restricts the ability of users to share account passwords with other people who do not pay a subscription to access the original content available on the platform.
Netflix surprised many people with the imposition of this measure, and this is because until now the American company has not made it clear that it wants to become so radical in terms of protecting access to accounts. Well, things have changed, so that Netflix has already imposed this restriction for some people, while for others it will be imposed in the not too distant future, and of course people are not satisfied, and here I I refer to those who had free access.
Netflix: The Reason for the RADICAL Decision Taken for the WHOLE World
Netflix made this decision because, according to analysts, it appears to be losing billions of dollars annually due to people using other people's accounts to watch movies and series instead of paying for them. Unofficial estimates say that somewhere around 30%, at least, of the Netflix subscriber base would give access to at least one other person to the accounts, so that means somewhere around at least 68 million people from all over the world who would access the platform without have their own subscription.
Netflix would lose 9 billion dollars annually because of these people, based on the average revenue per subscriber which is 11.02 dollars, and we are talking about a staggering figure, that is, almost half of its total revenue in 2020. Based on analysts' estimates, Netflix could generate between 2.5 billion and 6 billion dollars following the application of the measure regarding the restriction of access to the account with another person's password, and this would bring money for investments in even more content.
Netflix substantially increased its subscriber base in 2020 due to the Coronavirus pandemic, and now it is looking for ways to increase its income, because along with subscribers came those who do not pay for content.
