Netflix could introduce adverts to its service as well as new rules around passwords after its number of total subscribers decreased for the first time.
The streaming platform has long been known as one of the first sources of film and television that doesn't force viewers to sit through lengthy commercials. That could change as new rules and updates may see them introduced.
After a sudden drop in subscribers, Netflix announced it may test out showing ads to some users along with clamping down on people who share their passwords. Despite over 222 million using their services, they estimate an extra 100 million are piggybacking off other accounts.
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Chief executive Reed Hastings has said Netflix will be testing password-sharing subscriptions for users who want to do so. They added those who do share passwords won't be cracked down on as of yet as it "wasn’t a high priority to be working on."
The Mirror reports Mr Hastings did not give details of how password sharing might be addressed and whether there would be a limit on the number of people who can use a single account. The company has plans to expand a trial programme it has been running in Chile, Costa Rica and Peru, where subscribers can allow more than one household to share a login for a discounted price.
Netflix has been grappling with slowing revenue growth caused by stiffer competition from rival services in recent months. Yesterday it announced that it ended the first quarter of 2022 with 200,00 fewer subscribers than the three months before - missing its growth projection by 2.7million customers.
Netflix says it expects to lose two million more customers worldwide this quarter. The end of pandemic lockdowns, during which many people spent time binge-watching television, and the rise of rival platforms such as Apple TV and Disney Plus, has chipped away at Netflix's dominant position. Some have also cited the cost of living crisis as a possible reason some are ending their subscriptions.
The firm's drop in users stemmed in part from it decision to withdraw from Russia in protest at the war in Ukraine, resulting in a loss of 700,000 subscribers. Netflix's boss has said a separate, cheaper subscription plan with adverts is being considered.
"Those who have followed Netflix know that I’ve been against the complexity of advertising and a big fan of the simplicity of subscription,” Mr Hastings said, the Wall Street Journal reported. But as much as I’m a fan of that, I’m a bigger fan of consumer choice."
The firm offered no additional information about how a cheaper ad-supported version would work or how much it would cost.
