Spain: Netflix password clampdown costs 1m subs
April 26, 2023
From David Del Valle in Madrid
Putting a stop to password sharing has led Netflix to losing 1 million subscribers in Spain in the first quarter of the year, according to data from Kantar.Netflix tripled its churn rate in the quarter versus the previous quarter, with half of those giving up saying that they will not pay for the service.
The forecast for the next quarter is also gloomy as 10 per cent of present subscribers say they will be leaving the service, according to Kantar. The decline in Netflix is having a positive impact on rivals such as Prime Video which, according to consultancy firm Geca, is now leading the streaming market in Spai with a penetration rate of 67.3 per cent versus Netflix’s 66 per cent.
In announcing its results last week, Netflix suggested it delaying its ‘paid share’ scheme – i.e., making subscribers pay for sharing accounts – as, perhaps not surprisingly, it has had a ‘cancel reaction’ in markets it was trialled in, such as Spain and Canada. The scheme allows the main Netflix account holder to add two more people outside of their homes to the plan for an additional C$7.99 per month per person in Canada, NZ$7.99 in New Zealand, €3.99 in Portugal, and €5.99 in Spain. The company believes it will eventually convert 20-30 per cent of the ‘freebies’ into paid subscribers.