Although Netflix initially reported positive experiences, subscribers in major markets do not appear to be embracing the family account system with open arms, which the world's largest online video streaming service has rolled out to its subscriber base in a planned, phased manner.
Although the platform has managed to grow steadily in recent years, the number of reported new subscribers has been declining in recent quarters, and many people interpret the slowdown as measures taken against account sharing.
According to LSEG data, Netflix's growth has slowed since the first quarter of this year, with the platform gaining 4.82 million subscribers in the second quarter, the lowest number since the first quarter of 2023. In the last quarter of last year, it gained nearly 15 million new subscribers.
Meanwhile, advertising revenue also increased in the second quarter of this year: it doubled to $9.53 billion, the most impressive result since Q2 2021. The growth is supported by another metric: the platform has started rolling out its cheapest ad-free plan at $11.99 per month in some markets (the UK and Canada for now).
This move means that users of the basic package will have to pay more for ad-free access, or accept ad-supported streaming (where possible).
Last November, the video streaming service Disney+ also imposed restrictions on the shared use of its users’ accounts. The company is essentially copying Netflix’s restrictive action, which has been widely implemented since last May, one by one.
