Netflix loses 200,000 subscribers, says it's planning a big password-sharing crackdown

The Hollywood Reporter

The streamer's stock plunged 23% in after-market trading after it reported its first subscriber loss in more than a decade. Netflix also reported it lost 700,000 subscribers after suspending service in Russia after the country invaded Ukraine. In its shareholder letter, Netflix cited “the large number of households sharing accounts” as a critical factor “creating revenue growth headwinds.” “This is a big opportunity as these households are already watching Netflix and enjoying our service,” the company wrote in its letter. “Sharing likely helped fuel our growth by getting more people using and enjoying Netflix. And we’ve always tried to make sharing within a member’s household easy, with features like profiles and multiple streams. While these have been very popular, they’ve created confusion about when and how Netflix can be shared with other households.” Netflix added: “There’s a broad range of engagement when it comes to sharing households from high to occasional viewing. So while we won’t be able to monetize all of it right now, we believe it’s a large short- to mid-term opportunity.”