It seems that we already have figures for the disaster that many smelled at a distance. Netflix has lost quite a few users in Spain after it activated its new shared account policy, and the data shows an incredible loss of no less than more than 1 million customers. And the question is, will they come back?
A blow to Netflix
The data comes thanks to the study Entertainment on Demand carried out by Kantarwhere the behavior of the video-on-demand market between January and March 2023 is revealed. Let us remember that Netflix activated the policy of prevent sharing passwords outside the home in the month of February, so this period captures the behavior of users during that period.
The result could not have been more disastrous, since the figures reveal that more than a million users left the service during these months. Basically Netflix has seen how his dropout rate tripled at this time, which shows, no matter how much they deny it, that the decision not to let them share passwords hurts them a lot.
And it might not end here
The most worrying thing is that the estimates suggest that the drop in users could continue to increase, since 10% of users who have stayed paying are considering leaving service in the second quarter. This figure of 10% would be well above the average that was normally recorded in previous quarters, so, once again, the tension among users is evident.
Prime Video favored
But if there is someone who has won in all this mess of passwords, it is Amazon. The giant has managed for its Prime Video service to record the highest share of subscriptions for yet another month (followed by Sky Showtime, which landed in Spain in March), and it is noteworthy that more than half of the users who left Netflix had a Prime Video.
What does Netflix have to do to get users back?
Seen what has been seen, the trend seems to be pointing quite badly, since the loss of users will only grow in the coming months. However, it seems that Netflix is doing things quite well in Spain, and one of them is making local content. Among the list of most watched series in the quarter, the second and fourth places are Netflix series produced in Spain.
This reflects that the national content has a significant pull, and although the gigantic The Last of Us take first place, see two series produced in Spain among the first four is quite an interesting fact. We’ll see if Netflix continues to bet on this strategy and manages to convince again that large part of users who were not willing to pay the 5.99 euros that must be paid for sharing accounts in different homes.
Fountain: Kantar
Via: Bloomberg
