Netflix has reported that - for the first time in over a decade - it has seen a loss of subscribers.
Yes, it looks like sponging off your parents' Netflix account may be causing grief for the streaming giant, which reported its first subscriber loss for more than 10 years on Tuesday.
Netflix boasts more than 222 million paid subscribers worldwide, per Business Insider, but the company's Q1 earnings report revealed a drop the company has not experienced in more than 10 years. The company did list a few factors that may have led to the loss, with password sharing being a primary concern.
Speaking at the company's earnings interview, Netflix co-CEO Reed Hastings said: "We realized with all of the account sharing, which we've always had — that's not a new thing — but when you add that up together, we're getting pretty high market penetration."
As well as an increase in industry competition from the likes of Hulu, Disney+, and Amazon Prime, Hastings went as far as to blame account sharing as a driving force behind Netflix's "lower acquisition and lower growth".
Business Insider reports that an estimated 100 million households are believed to be watching Netflix thanks to somebody else's account - with 30 million of these households being in North America.
But Netflix is prepared to tackle the issue.
Last month it was reported that the streaming giant was introducing plans to crack down on password sharing.
As reported by NPR, Netlfix revealed it would be testing a new feature to finally put an end to password sharing. Testing in three countries - Chile, Costa Rica, and Peru - it was revealed that those who wished to add up to two extra profiles on their Netflix accounts would have to pay more on top of their monthly payment.
The Independent also reports that Netflix is also considering introducing a lower-price account option, but in return, these users would be served advertisements. Hulu, for example, is another streaming service that also offers users a cheaper price for an ad-supported subscription.
At this time, however, Netflix has provided no additional information regarding its idea for a cheaper ad-supported service tier.
But over on Twitter, news of this potential addition was not well received by some people.
One Twitter user wrote: "If I see ads on Netflix I’ll lose it! That defeats the whole point!"
A second added: "If Netflix puts in ads I’m canceling that subscription."
However, some users didn't seem to mind, with one Twitter user writing: "I'll take cheaper Netflix with ads."
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