Netflix’s curbs on password sharing may lead to a larger subscriber base- QHN

Netflix’s decision to crack down on password sharing in India may help the streaming giant boost its subscriber base in the country, even though the platform may see a drop in shared access viewers in the short term, reported Economic Times (ET) citing media analysts.

According to industry estimates, Netflix’s paid base in India ranges between eight and 10 million.

Netflix stated in a letter to shareholders that it will begin to address account sharing between households in almost all of the remaining countries, including India.

Since it reduced pricing in the country in December 2021, the platform will not be offering an additional member option in India.

Netflix also said that it added nearly six million paid net additions for the three months ending June after cracking down on password sharing in over 100 countries, accounting for more than 80 per cent of its revenue base.

“This is a good move to increase subscriptions in India. Netflix will undoubtedly gain subscribers, even if they may lose some shared access viewers in the short term,” said Uday Sodhi, senior partner at Kurate Digital Consulting, a digital transformation and strategy consulting firm.

A senior media analyst told ET that password sharing and piracy are widespread in the Indian market.

“There is a disparity between their active user base and their actual paid base, implying a high level of password sharing and piracy. It’s too early to predict, but the crackdown on password sharing will help them gain additional subscribers in India,” he added.