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Netflix Password Sharing Crackdown Works, U.S. Subscriber Numbers Soar
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People speak with their wallets. Tweets and forum posts may show dissatisfaction, but if they ultimately break out the credit card, their steps worked.
Technically they're right, 720p IS HD
Indeed, it's not who is posting or tweeting about cancelling, it's what the silent majority are doing that decides.
Number of subscribers mean nothing! Revenue does. If the new subscribers are paying $7.99 and the canceled accounts paid $19.99, you would need more than TWICE new subscribers to offset the revenue of the users canceling. I'll believe Netflix when I see the - real - numbers. Obviously right now, they're showing the stats that look good...
I tried it once, there's just a few good shows among hours and hours of utter rubbish. Those good shows you can get elsewhere for free anyway.
How do you know OP is a kid or even younger than you?
Your right revenue is more important then number of subscribers to a streaming service. But ad-based subscriptions are profitable. That is why the lowest priced subscriptions are ad-based now. The article below points out why streaming services are all focusing on that.
5 Figures To Know About Netflix’s Newly Launched Ad-Supported Tier
Experts say the new Netflix platform, Basic with Ads, could bring in billions in additional revenue. But will it cannibalize existing users? Is there a downside to the launch?
www.forbes.com
People who drop Netflix because they can no longer share their login with several other people aren’t the kind of customers anyone wants anyway, whether it’s Netflix, HBO max, Paramount … you name it.
That people are “outraged” that they can no longer easily ‘steal’ content - that’s bizarre.
That people are “outraged” that they can no longer easily ‘steal’ content - that’s bizarre.
You basically have a bunch of posters who thought they were smarter than the MBAs running Netflix.
Keep in mind they already beta tested this policy in a few Latin America countries where piracy is high and income low. It worked in Netflix favor. So they brought it everywhere.
Keep in mind they already beta tested this policy in a few Latin America countries where piracy is high and income low. It worked in Netflix favor. So they brought it everywhere.
This is what is expected to happen. It's only a minority of people who care about this. Same with Reddit. Apollo and other third party apps are gonna die because of the BS API crap ... but people who quit Reddit over this .. drop in the bucket. It won't affect Reddit at all.
I’ve been using someone else’s account for a longest time now. Yesterday I couldn’t watch anymore.
I guess Netflix saved me time by, forcing me to do something productive.
I guess Netflix saved me time by, forcing me to do something productive.
The numbers don’t account for the length of subscriptions canceled. I suspect many long term passive subscribers will be woken up to the decreased value proposition and decide these prices aren’t worth it whereas recent signups may be short term. Let’s see how this is working in a year or so for them!
Netflix in May started cracking down on password sharing in the United States, and the decision has worked in the company's favor, according to subscriber data shared today by analytics company Antenna (via The Wall Street Journal).
Just after putting an end to multi-household password sharing in the United States, average daily signups to Netflix reached 73k per day, a 102 percent increase from the prior 60-day average. Netflix saw close to 100,000 daily signups on both May 26 and May 27, beating out signups even during COVID lockdown periods.
Netflix did see an increase in subscription cancelation following the policy change, but the number of people canceling did not beat the number of new signups that the company received. Antenna says that the ratio of signups to cancels since May 23 is up 25.6 percent compared to the prior 60-day period.
According to Netflix, more than 100 million households were sharing accounts, impacting its ability to "invest in and improve Netflix" for paying members. The company said that it expected some cancel reaction in the United States, but based on earlier rollouts in other countries, the policy change would result in acceleration in revenue growth and member base.
Netflix is no longer allowing subscribers to share passwords with people who do not live in the same location. Netflix users are required to establish a primary location, and subscribers who live elsewhere are not able to use the account. There are allowances for travel or second homes, but Netflix is now using IP address and other information to restrict multi-household usage.
Netflix users can pay an additional $7.99 per month to allow one extra member to use a Standard or Premium Netflix account outside of the primary location, and up to two additional people can be added (Premium plan only).
The extra fee provides each person with a profile, personalized recommendations, login, and password. Alternatively, there is a profile transfer process that will allow those who were previously using Netflix for free to make their own paid accounts.
Netflix is priced starting at $6.99 per month for the plan with ads. A basic plan with no ads, access on one device at a time, and 720p HD streaming is priced at $9.99 per month. The Standard Plan with 1080p streaming and access on two devices at one time is priced at $15.49 per month, and the 4K Netflix plan with support for watching on four devices at a time is priced at $19.99 per month.
Note that while the Standard and Premium plans allow for watching on two to four devices at a time, Netflix's new policy is that all of those devices need to be in the same household location.
Article Link: Netflix Password Sharing Crackdown Works, U.S. Subscriber Numbers Soar
Yes, sharing my streaming accounts with my aging grandparents that live several blocks away is a real crime.
Let’s call this what it really is, a price increase. Netflix has raised prices so many times in recent years that they decided they had to finally play this card and shame their customers into paying more because it’s easier to do that than raise prices without any apparent justification once again. They’ll be charging YouTube TV/cable prices soon for content that has become increasingly vacuous and low quality.
Corporations aren't stupid. The purpose of a corporation is to make money and any big move like this has gone through multiple levels of review. An average person is very easy to manipulate and this is a well-known fact.
i wonder if that increase will last. i was logged in and would see what was on there occasionally because it didn’t cost me anything, but i would never pay for netflix. their shows are so bad.
You use the correct word in that sentence there: sharing. They already had limits in place… you paid for the number of screens right? “Net” Flix implies place doesn’t matter… and it didn’t for the last 10+ years and it only matters now?
It’s just a price increase by value decrease… Digital shrinkflation!
It’s just a price increase by value decrease… Digital shrinkflation!
The results Netflix has seen in other countries (Canada, Latin America, etc) where they started cracking down on password sharing way before than in the U.S. has shown otherwise. As they noted in their most recent earnings report, they will see a modest decline in the near term as people cancel, but revenue growth and new account sign ups increase over time.
Not only that, but a lot of people (about 1 out of 4) who are signing up for their own account are opting for the $6.99/mo Standard with ads plan. There are over 5 million people on the Standard with ads plan now which also by the way is more profitable than their $9.99/mo Basic plan.