Netflix has lost a million users in Spain and, even so, it has reasons to eliminate shared accounts

Since Netflix decided to change its policy regarding shared accounts, affecting users in Spain and three other countries, the big question was clear: how many people were unsubscribing because of it? That there were many people upset by this new system, which includes the payment of €5.99 for each extra profile of a person from another household, was clear and could be seen on social networks, but it was impossible to detail whether this anger was really representative from the behavior of the general mass or just a few very loud ex-customers. Now, we already have more data, although as strong as they sound, the company continues with its plan. to implement this system throughout the world, for which it seems that it is profitable.

It has not been Netflix itself who has offered the data in question, but the consultant Kantar Media, the same one that offers audience data (and that collects Bloomberg). According to the metering company, and through a report carried out through surveys, Netflix would have lost more than a million users in Spain in the first three months of 2023. It is a figure, of course, not negligible, although some points must be made in this regard. To begin with, Kantar points out that two-thirds of that million were users using someone else’s passwordthat is to say, that they were not subscribers who paid their own account and, therefore, it does not suppose an economic loss for the company (it does in terms of potential audience of its contents).

On the other hand, it is pointed out from Kantar that subscription cancellations tripled in that first quarter of 2023 compared to the previous period. Also, that a tenth of those surveyed reveal that they plan to unsubscribe during the second quarter of the year, which could be a second blow to Netflix’s local market.

Users vs. subscribers

Is this fact of the million users really so serious as to raise their hands to their heads and admit that the strategy has gone wrong? As we analyzed a few days ago, contrary to what one might think, it seems that Netflix has worked out the game of shared accounts. How is it possible with that drop? Because they are not afraid of losing users (i.e. people who used their platform, paying or not) as long as they retain a good number of subscribers (people who pay for the platform). It is also a bet with a certain perspective on the medium and long term: in the short term they will suffer casualties, yes, but they make sure that tomorrow whoever wants Netflix will have to pay. Yes or yes.

And we insist on what we said the other day: the great proof that it has not backfired on them is that, after assessing the data, they have decided to go ahead with this change and implement it throughout the world. Spain, Portugal, New Zealand and Canada have been an experiment, but now it is going to spread globally, including its main territory, the United States.. In its shareholder earnings call, Netflix acknowledged: “In Canada, which we believe is a reliable predictor of what will happen in the US, our paid subscriptions are now higher than before the launch of shared bill payment and revenue growth has accelerated and is now growing faster than in the US.

It’s clear, isn’t it? We can cling to the data of the million users that Netflix has lost in Spain (which, yes, is not small feat), but it is evident that, beyond how bombastic it sounds as a headline, a broader analysis leaves us to see that the company has won this game.