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Netflix hints at password sharing crackdown as subscribers fall
Netflix has hinted it will crack down on households sharing passwords as it seeks to sign up new members following a sharp fall in subscribers.
Some 200,000 people left the streaming service in the first three months of the year as it faced intense competition from rivals.
It was also hit after it raised prices in some countries and left Russia.
Netflix warned shareholders another two million subscribers were likely to leave in the three months to July.
“Our revenue growth has slowed considerably,” the firm told shareholders on Tuesday after publishing its first quarter results.
“Our relatively high household penetration – when including the large number of households sharing accounts – combined with competition, is creating revenue growth headwinds.”
The streaming giant estimates more than 100 million households are breaking its rules by sharing passwords.
Boss Reed Hastings previously described the practice as “something you have to learn to live with”, adding that much of it is “legitimate” between family members. The firm also said account sharing had probably fuelled its growth by getting more people using Netflix.
But on Tuesday Mr Hastings said it was now making it hard to attract new subscribers in some countries.
“When we were growing fast, it wasn’t a high priority to work on [account sharing]. And now we’re working super hard on it,” he told shareholders.
The firm said that measures it is testing to curb password sharing in Latin America could be rolled out to other countries, with accounts that break the rules charged extra.
Lucas Shaw, who writes the Screentime newsletter for Bloomberg news, told the BBC that password sharing had been an issue for Netflix “for a long time” but was by no means its biggest challenge.
“It feels like the company is trying to identify an area of potential growth,” he told the Today programme.
“They’ve tried to curb password sharing in the past and had a very hard time.”
Shares in the streaming giant plunged more than 25% in after-hours trading following the news, wiping more than $30bn (£23bn) off the company’s market valuation.
Subscriber exodus
The last time the company lost members in a quarter was October 2011 and it warned that many more people would cut ties this year.
The firm remains the world’s leading streaming service, with more than 220 million subscribers, but it said a surge in sign-ups during the pandemic had “obscured the picture” around its growth.
Analysts say people are cutting back on streaming as they look to save money and feel overwhelmed by the volume of content available.
Netflix also faces intense competition as firms such as Amazon, Apple and Disney pour money into their online streaming services.
Paolo Pescatore, an analyst at PP Foresight, said the subscriber loss was a “reality check” for Netflix, as it tries to balance retaining subscribers with raising its revenue.
“While Netflix and other services were key in lockdown, users are now thinking twice about their purchasing behaviour based upon changing habits,” he said.
North America especially is “now awash with too many services chasing too few dollars”, he added.
Russia hit
Pulling out of Russia, a step Netflix took following the war in Ukraine, cost it 700,000 subscribers, Netflix said.
Another 600,000 people stopped its service in the US and Canada after its put up prices, it added.
Netflix said that move was playing out “in line with expectations” and would yield more money for the firm, despite the cancellations.
Its revenue in the first three months of the year was $7.8bn (£6bn), up 9.8% compared with the same period last year.
That marked a slowdown from earlier quarters, while profits fell more than 6% to roughly $1.6bn.
As it looks to grow, the firm said it was focused on international markets and was also looking at bringing advertising into its services.
Mr Hastings said it was “pretty clear” that ad-supported services were working for Disney and HBO.
“Those who have followed Netflix know that I’ve been against the complexity of advertising, and a big fan of the simplicity of subscription,” he said. “But, as much as I’m a fan of that, I’m a bigger fan of consumer choice.”
Analysts say the rising cost of streaming services was starting to wear on households.
Source: BBC
Entertainment
Demolition of Fantasy Dome unfair — Mark Okraku-Mantey
Months after the Fantasy Dome was dismantled to make way for construction at the Ghana International Trade Fair site, the Deputy Minister of Tourism, Arts and Culture, Mr Mark Okraku-Mantey, has expressed concern over the manner the facility was destroyed.
In an interview on Daybreak Hitz with Andy Dosty, Mr Okraku-Mantey criticised the handling of the dome’s dismantling, suggesting that it could have been done without causing damage.
“I don’t think that leadership gave instructions that they should do what happened. The structure was a prefab but I hear the people destroyed it. That one, we cannot defend it. It is unfair to him (owner). Sometimes, you give instructions and people will go and do things that will make you look bad,” he stated.
When asked about any punitive measure against the workers responsible for the destruction, Mr Okraku-Mantey clarified that the Trade Fair does not fall under his ministry.
He said he had previously contacted the owner, Leslie Quaynor, to discuss relocating the dome, and even suggested the National Museum as a potential site, though it was too small.
The demolition of the 20,000-seater Fantasy Dome occurred on March 16, 2024.
According to Dr Agnes Adu, CEO of the Ghana Trade Fair Company Limited, the action was taken after multiple notices were given to Quaynor to vacate the premises for redevelopment, as per their tenancy agreement.
Dr Adu noted that all previous tenants had complied except for the Fantasy Dome.
Quaynor, in an interview with JoyNews, confirmed that his lease had ended, and was in the process of relocating the dome.
He had requested an extension, which was denied, leading him to seek a writ and an injunction from an Accra High Court to halt the demolition.
Despite this, the demolition proceeded, causing significant damage to the structure.
Quaynor described the incident as a major setback, not only for his business but also for the entertainment industry, which relies on venues like the Fantasy Dome.
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Youth urged to take proactive stance on ozone depletion
•Mr Joseph Amankwah, first counting from, some officials from EPA and UNDP in group picture with the student
Mr Joseph Amankwah, the Director of Ozone Layer and Climate Change at the Environmental Protection Agency (EPA), has urged the youth to take a proactive stance on issues related to ozone depletion, emphasising that their future would be most affected by its consequences.
Speaking during a student engagement event at the Ghana Secondary School (GHANASS) in Koforidua, he highlighted the critical role young people played in tackling climate-related challenges.
Mr Amankwah explained that human activities, such as the use of certain chemicals, were significantly contributing to the depletion of the ozone layer and driving climate change.
He said it was important to educate the youth on these issues, encouraging them to share this knowledge with their families to foster a broader understanding and active participation in climate action.
He urged the education sector to integrate lessons on the ozone layer, the causes of its depletion, and its links to climate change into the curriculum.
The event, organised by the EPA in collaboration with the United Nations Development Programme (UNDP), was designed to foster environmental awareness and promote a sense of responsibility among young people.
Mr Amankwah noted that ozone layer depletion was affecting everyone, including children, as it alters weather patterns and threatens the natural environment.
He highlighted the need for young people to develop ‘green skills’ to adapt to the challenges of climate change and to understand ways to combat it.
He added that World Ozone Day, observed every September, would focus on youth engagement in environmental issues, to help them understand the long-term consequences of ozone depletion and climate change.
Mr Amankwah also discussed the harmful impact of chlorofluorocarbons (CFCs), a major chemical contributor to ozone depletion.
He explained that household appliances such as refrigerators and air conditioners were common sources of CFC emissions in Ghana.
Many uncertified technicians work on these appliances, often releasing harmful chemicals into the atmosphere due to improper handling, he noted.
To address this, he urged appliance repairers to obtain proper certification and training, emphasising that unqualified repairs not only harm the environment but also endangered public health.
From Ama Tekyiwaa Ampadu Agyeman,
Koforidua
