Netflix May Increase Subscription Prices Post Success Of Password Sharing Crackdown
Netflix had only checked password-sharing outside households to tap the more than 100 million viewers who use its service without subscribing.
In what may be bad news for Netflix fans, the streaming giant is planning to brings changes that would make users shell out more for its content. The streaming major is likely to hike its subscription prices when it announces its reports, news agency Reuters has reported. The company launched a crackdown on password sharing in several countries, including in India, which apparently worked in its favour.
The company's decision came in July, as part of a broader global crackdown on password sharing beyond immediate family members, intended to boost revenue following a challenging period last year. Earlier in May, Netflix announced its determination to curb this practice, and the results were encouraging.
"Netflix now closely resembles a utility in many markets," analysts at Bernstein were quoted as saying by the Reuters report.
"The challenge of being labeled a utility is how a maturing company continues finding growth."
With this, Netflix, perhaps the only profitable streaming major, will join the likes of competitors Walt Disney in hiking prices of ad-free tiers this year. It had only checked password-sharing outside households to tap the more than 100 million viewers who use its service without subscribing.
Earlier this month, a report said that the streaming giant is likely to increase prices of its ad-free subscription service after the continuing Hollywood actors strike ends. According to a report by The Wall Street Journal (WSJ), which cited souces familiar with the development, Netflix is mulling to increase the prices in several markets globally, and the US and Canada may be the first regions to witness an increase in subscription costs.
It is not known if the price hike will be applicable for Netflix users in India.
This also comes amid reports of Netflix mulling to launch retail destinations in 2025. Dubbed Netflix House, the streaming giant's retail destinations will offer offer things to buy apart from food and other activities and experiences themed after what is trending on Netflix at the moment, a report by news agency Bloomberg said. The company already sells merchandise via its online merch store.
Top Headlines
