Netflix Lost 1 Million Users in Spain Amid Password Crackdown, Research Suggests

pcmag.com:

Netflix’s decision to crack down account-sharing may have caused over 1 million users in Spain to drop the streaming service. 

The estimate comes from market research firm Kantar, which conducted recent surveys looking at household streaming habits in Spain, according(Opens in a new window) to Bloomberg. “Interestingly, there is no strong demographic skew to those who canceled, signaling a more outright rejection of the password sharing clampdown,” Kantar wrote in its report(Opens in a new window). 

According to Kantar, the cancellations occurred in “a little over a month” during Q1 when Netflix began restricting password-sharing for users in the country, along with other markets such as Canada, New Zealand, and Portugal. “In a worrying sign for the next quarter, 10% of remaining Netflix subscribers say they plan to cancel their plan in Q2 2023, which is well above the average seen in previous quarter,” the report added. 

Kantar suggests the loss of over 1 million users might cause Netflix to backpedal on expanding the account-sharing crackdown to more markets, if enough subscribers flee. The streaming giant plans to start restricting password-sharing in the US and other countries sometime during Q2, which ends on June 30.  

Netflix didn't provide an official comment on Kantar's findings. But during its most recent earnings report, the company itself acknowledged that some subscribers did cancel in reaction to the crackdown coming to their market in Q1.

That said, the company’s own data shows other subscribers signing up for “paid sharing,” an add-on that can let them continue sharing their account with someone outside their household—so long as they pay a little more. Meanwhile, some former freeloaders began paying for