Netflix loses 1 million users in Spain after new password policy

Video streaming Netflix has lost over one million users in Spain due to its decision to crack down on password sharing. This crackdown on account sharing had been rolled out during the first three months of 2023.

If you’re a Netflix subscriber or follow the company closely, you should already know that the streaming giant intends to charge extra fees to all of its users who share their passwords with third parties. Although the new policy has not yet arrived in some part of the globe, countries such as Canada, Portugal, Spain and New Zealand are already under surveillance and have seen the effects of the action. In fact, in Spain, the development was not very well accepted by fans of movies and series suggesting a relook on the implementation.

Research groups Kantar and Nielsen have both reported that this decision to crack down on password sharing had led to the significant drop in users. It’s worth noting that Netflix is not the only streaming service that has taken action to combat the practice of password sharing, with other services such as Disney+ also putting measures in place to tackle the problem. However, this move has led to some criticism from users and even experts, who argue that such measures could backfire and lead to a decline in user numbers.

“It’s clear this steep drop is due to the crackdown,”

Dominic Sunnebo, global insight director at Kantar’s Worldpanel Division, told Bloomberg.

The publication reveals that in the first three months of 2023, Netflix lost at least 1 million users in Spain, according to a study by the Kantar Group, a global leader in data, insights and consulting. And the reason for this drop would be directly linked to the new password-sharing guidelines, which require subscribers to pay additional amounts for sharing their login data with friends, family and other individuals.

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