Password sharing is going to be a thing of the past in 3 years. After giving users the ability to transfer their profiles to new accounts, the streamer will allow subscribers to create sub-accounts.
The streaming service added over 2 million subscribers this quarter as it looks to launch an ad-supported tier next month and tighten up on password sharing. Over the last three months, the streamer has grown by 104,000 subscribers in the US and Canada, up from 73,000 in the same period last year.
The company lost subscribers in the US and Canada for the first time in over a decade last quarter. Password sharing has been slowly nudging subscribers away from it. If someone was using the owner's subscription outside of their household, they would have to pay for a sub account.
It tried out a way for users in Argentina, El Salvador, Guatemala, Honduras, and the Dominican Republic to buy additional homes for their accounts. Users can easily transfer their personalized recommendations, viewing history, My List, saved games, and other settings to a new account after testing it in other countries. The Rest of World reported last month that users were frustrated by the tests in Latin America.
In the US, Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, and the UK, Basic will be available on November 3rd. The ads will last anywhere from 15 to 30 seconds, according to the partnership between the two companies. Licensing restrictions prevent this tier from giving subscribers access to the entire library. Basic subscribers can only view content in high definition on their devices. Disney Plus', which is set to go live on December 8th, coincides with the company's ad-supported tier.
Disney, Warner Bros. Discovery, Paramount, and NBC build up their content libraries and base of paying subscribers, which is why they are competitors. It is difficult to build a large and profitable streaming business, as our best estimate is that all of these competitors are losing money on streaming, with aggregate annual direct operating losses this year alone that could be well in excess of $10 billion.
There is a series produced by The Verge with the internet service provider.
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