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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
Breaking News: Daddy Lumba is dead – Family announces
Ghanaian music legend Charles Kojo Fosu, popularly known as Daddy Lumba, has died.
His family confirmed the sad news in a press release issued on Saturday, saying the 60-year-old passed away earlier in the day after a short illness.
“It is with profound sorrow and deep grief that the Fosu family announces the passing of Ghana’s beloved musical icon,” the statement read.
Daddy Lumba was one of Ghana’s most celebrated highlife musicians. With a career spanning more than three decades, his songs touched millions, telling stories of love, pain, joy, and hope.
He was known for his powerful voice, emotional lyrics, and unique style that made him a household name across the country and beyond.
“His soulful voice provided the soundtrack to our love stories, and his poignant lyrics captured the poetry of our struggles, dreams, and resilience,” the family said.
The family has asked for privacy as they mourn their loss and promised to announce funeral arrangements in the coming days.
The statement was signed by Fati Ali Yallah, a lawyer from Baba Jamal & Associates, on behalf of the Fosu family.
Fans, fellow musicians, and Ghanaians across the country have started pouring out tributes on social media, remembering Daddy Lumba’s unmatched contribution to Ghanaian music.
Entertainment
Edem’s debut album gets praise from Sarkodie
Ghanaian rap star Sarkodie has celebrated fellow artiste Edem for his groundbreaking debut album “The Volta Regime”, calling it one of the greatest albums in Ghana’s music history.
In a heartfelt social media post, Sarkodie, whose real name is Michael Owusu Addo, reflected on the first time he heard Edem rap.
He said he was instantly impressed and knew Edem would have a serious impact on the music scene.
“I remember when I first encountered my brother Edem, I came back home to tell one of my hommies that this guy will have a serious impact on the music scene,”
“He was like naa because of the language barrier. I said I don’t hear language, I hear greatness. Big up my brother, you are still on my favourite emcee list.” Sarkodie wrote.
Edem, born Denning Edem Hotor, released The Volta Regime in 2009. The album boldly embraced the Ewe language and featured collaborations with top Ghanaian artists including Tinny, Kwabena Kwabena, and Jeremie Van-Garshong.
Despite initial doubts about how well Ewe rap would perform commercially, the album proved to be a major success and introduced a new wave of local-language hip-hop.
Songs like Bra Fre Me, Nyorvuviade, and the powerful Intro helped establish Edem’s lyrical prowess and cemented his place as a unique voice in the Ghanaian music industry.
At a time when the local scene was dominated by Twi and Ga-speaking rappers, Edem’s success broke barriers and made it clear that talent speaks louder than language.
His impact opened doors for more linguistic diversity in hiplife and hip-hop music across the country.
Sarkodie’s tribute is especially meaningful because both artists emerged around the same period. Sarkodie’s own debut album Makye also dropped in 2009, and the two have long shown mutual respect for each other’s craft.
Today, over 15 years after its release, The Volta Regime continues to inspire fans and artists alike. It remains a symbol of bold originality and cultural pride.
Edem has since released several projects and remains an active voice in Ghanaian music and youth advocacy. His legacy is a reminder that true greatness is not limited by language.
