In its Q1 earnings report on Tuesday, the company reported its first subscriber loss in over a decade, as it lost 200,000 subscribers. Password sharing was one of the factors blamed by the company. There are over 200 million paid subscribers worldwide. 30 million households in North America are using the service through a password shared with them. In its shareholder letter, the company said it would focus on how to monetize account sharing. The issue has already been addressed by the company.
It started testing a new feature in three Latin American regions, in which subscribers would be able to add up to two extra memberships for a small fee.
The company said in its earnings letter that it has a broad range of engagement when it comes to sharing households.
As we work to monetize sharing, growth in average revenue per membership will become more important indicators of our success than membership growth.
In its letter, the company projected that it could lose 2 million subscribers in the second quarter. Its stock plummeted in after-hours trading.
The CEO of Business Insider is a member of the board.
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