Netflix’s New Pay-To-Share Password Setup: “We’re Seeing That It’s Working,” Co-CEO Greg Peters Says In Q2 Earnings Interview
deadline.comNetflix Co-CEO Greg Peters said the initial verdict is in on paid password sharing — a risky but multi-billion-dollar initiative for the company — and it is positive. “We’re seeing that it’s working,” the exec said, noting that the scheme, developed after a year-and-a-half of internal deliberation and development, has now been rolled out virtually worldwide.
Revenue and subscription levels have increased across all global regions, Peters noted during the company’s second quarter earnings interview, indicating that customers have largely remained loyal during the shift.
The key to keeping people in the fold, Peters said, has been balancing “user considerations” like the ability to preserve existing account profiles with “making sure Netflix is able to get reasonably paid when we deliver entertainment to someone.” The new proceeds, he said, will go toward “making the service better for everyone.” Before the call went online, Netflix reported strong quarterly results.
The headline number was the addition of 5.9 million subscribers, more than doubling Wall Street expectations. Paid sharing, a more benign-sounding description of a crackdown on the practice of passing along logins for free, arrived in the U.S.
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