Netflix's password sharing curbs could lift its subscriber base in India
Netflix's decision to clamp down on password sharing in India might help the streaming giant boost its subscriber base in the country, even though there is a high possibility that the platform could see a drop in shared access viewers in the short term, say media analysts. According to industry estimates, Netflix's paid base in India hovers between 8 million and 10 million. In a letter to shareholders, Netflix said it will start to address account sharing between households in almost all the remaining countries, including India.
The platform will not be offering an extra member option in India since it cut pricing in the country in December 2021. Netflix declared that it added almost 6 million paid net additions for the three months that ended June after the platform clamped down on password sharing beginning May in over 100 countries, which represented more than 80% of its revenue base. «This is a good move to shore up subscriptions in India.
Netflix will surely gain subscriptions even though they might lose some shared access viewers in the short run,» said Uday Sodhi, senior partner, Kurate Digital Consulting, a digital transformation and strategy consulting firm. A senior media analyst said on condition of anonymity that password sharing and piracy are rampant in the Indian market. The analyst expects Netflix to gain incremental subscribers due to restrictions on password sharing.
«There is a gap between their active user base and their actual paid base, which means that there is a lot of password sharing and piracy. It's early days to make a prediction, but the clampdown on password sharing will help them get incremental subscribers in India,» he added. Elara Capital SVP Karan Taurani said the crackdown will have a
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