Netflix subscribers are ditching the streaming service in Australia en masse – after a crackdown on password sharing
- Netflix is experiencing a decline in subscribers
- In May, password sharing was cracked down
Netflix has suffered a drop in subscriber numbers following a controversial move by the streaming giant to crack down on password sharing.
New figures show that subscriber numbers have fallen for the first time since Netflix launched in Australia in 2015, suggesting a move to stop password sharing has backfired.
Research firm Telsyte’s annual industry survey found that the number of Netflix subscribers had fallen by three percent over the past year to 6.1 million.
About 189,000 Australians have left the service in the past 12 months.
The survey found there was almost a streaming subscription account for every Australian: 24.6 million, compared to 23.4 million last year.
New figures show that the number of subscribers has fallen for the first time since Netflix launched in Australia in 2015
In May, Netflix announced it would tackle subscription sharing in Australia with new technology to stop password sharing.
The change meant that families or friends in different locations could no longer watch Netflix using the same account.
A new ‘Extra member’ option was offered to subscribers of the Standard or Premium subscription, giving one or two users cheaper access to their own Netflix account.
An ‘Additional member’ account costs a subscriber $7.99 per month and works on one device in another location.
The global crackdown on password sharing came after the company revealed that more than 100 million customers shared their accounts.
Netflix explained at the time that this practice could affect “our ability to invest in great new TV and movies.”
The move drew fierce backlash from outraged customers on social media who threatened to cancel their accounts.
Netflix announced in May that it would crack down on subscription sharing in Australia with new technology to stop password sharing in an effort to increase subscriber numbers
Utility writer and streaming broadband expert at Finder, Mark Neilsen, said the changes made Netflix try to increase its subscriber base, but ultimately failed.
Mr Neilsen said cost of living pressures were the main reason people were canceling subscriptions to streaming services.
“Our August survey found that 27 percent of people had unsubscribed from a streaming service and 44 percent of them had done so to save money,” he said. news.com.au.
Paramount+ recorded the biggest increase in subscriber numbers last year, up 41 percent to 1.5 million, followed by Foxtel’s Binge, up 22 percent to 1.5 million.
Amazon Prime Video increased its subscriber base by nine percent to 4.5 million last year and Kayo Sports by eight percent to 1.4 million.
The number of Disney + subscribers increased by one percent to 3.1 million, and Stan grew by two percent to 2.6 million.
The numbers include people who are currently on a free trial, though this may soon be a thing of the past.
Paramount+ recorded the biggest increase in subscriber numbers in the past year, up 41 percent to 1.5 million
Research has shown that the average Australian has two streaming services, with 69 percent subscribing to at least one
Mike Sneesby — the CEO of Nine Entertainment, which owns Stan — told The Australian Financial Review that free trials no longer make sense, and suggested Stan could try to end them.
Disney+ and Kayo also announced the removal of free trials, with the Kayo promotion taking effect from the end of September.
Finder’s Consumer Sentiment Tracker, released last month, found that the average Australian has two streaming services, while 69 percent of us subscribe to at least one streaming service.
According to the Finder stats, we spend an average of $45 a month on streaming.