The Verge
VergeApr 19, 2023
In a letter to investors Tuesday, Netflix announced it would roll out its plan for limiting subscribers’ ability to share passwords outside of their households in the US by July. Limits on password sharing have been trialed in other countries.
The announcement comes at the same time Netflix announced a 1.75M increase in subscribers for the first quarter of 2023, which outperformed analysts' predictions but was historically low for a Q1 result.
"Never bet against Netflix" has always been a disruptor in the entertainment industry. With the way it distributed DVDs and then increased the prominence of streaming, Netflix changed Hollywood forever. Now, it’s adding games to its service and cracking down on password sharing. Together with the success of its ad-based service, these moves should keep Netflix a powerhouse for years to come.
After failing to meet Wall Street’s expectations in the first quarter of the year, Netflix will face even more obstacles in the coming months, including a looming writer’s strike, competition from other streaming services, and a misstep in its attempt to create live programming. In order to succeed, Netflix has to prove it can meet these challenges and find ways, beyond the ad-based tier and the password-sharing crackdown, to innovate and grow.