Netflix to launch paid password-sharing feature after subscriber numbers hit record high

Netflix will roll out a paid password sharing system before June 2023 as itssubscribers hit a record high 232.5 million in the first quarter of 2023, reflecting the currently prevalent notion thatthe leading streaming giant finally breachedthe post-pandemic trend of low subscriber growth rate.

The Los Gatos, California-headquartered company said on Tuesday that itsad-supported version is giving crucial initial results at par with its expectations.

The streaming television giant reported a quarterly profit of $1.3 billion.

The company has delayed its much-anticipated crackdown on sharing of account passwords "to improve the experience for members."

Netflix password sharing crackdown: What is paid password sharing system?

Netflix said it expects to begin rolling out its options for paid password sharing in the current quarter, that is before June 2023. A paid password sharing system would entail members paying extra subscription charges for consumption of Netflix content beyond a designated number of accounts.

"We believe this will result in a better outcome for both our members and our business," Netflix said.

At the same time, a new ad-subsidised subscription tier at Netflix is in its early days. Netflix added that ithas seen "very little switching from our standard and premium plans."

Market tracker Insider Intelligence forecast that Netflix will bring in $770 million in ad revenue from the new tier this year, and that revenue figure will top $1 billion next year.

As the growth in number of subscribers slowed for Netflixlast year, the company began focusing on creating a lower priced subscription tier with advertising.

ALSO WATCH |Netflix lost subscribers for first time in a decade

Meanwhile, for the first time ever, US adults will spend more time this year watching digital video on platforms such as Netflix, TikTok and YouTube than viewing traditional television, Insider Intelligence has forecast.

The market tracker expects "linear TV" to account for less than half of daily viewing for the first time ever, dropping to under three hours while average daily digital video watching climbs to 52.3 percent with 3 hours and 11 minutes.

"This milestone is driven by people spending more and more time watching video on their biggest and smallest screens, whether it's an immersive drama on a connected TV or a viral clip on a smartphone," Insider Intelligence principal analyst Paul Verna said in a release.

WATCH WION LIVE HERE