This week, Netflix posted a disastrous earnings report. Subscribers dropped by 200k (against guidance to add 2.5m! Though, to be fair, a small part of the miss was driven by kicking Russian subs off), and they forecast a loss of 2m subs in Q2. In response,
Wasn't Netflix actively encouraging the sharing? With that Who is watching screen? I think that was part of the plan: suck the oxygen from the competition. Because you can only stream as much per day.
IMO If Netflix really knew how many people were password sharing then they would be able to clamp down on it.
Besides Netflix has subscription plans that include 1, 2, or 4 streams. I think the real problem Netflix has is people just don't watch it that much and keep it because it's cheap. That's why people are willing to share passwords.
Companies like WBD and DIS have much more extensive catalogs including huge franchises (DC, Marvel, Star Wars, Harry Potter, etc) which are easier to build upon and generate a ton of revenue in perpetuity. Unless Netflix can do that (which is even harder to do now with the movie theater business suffering) I don't see them having any real advantage. It's also super easy to cancel and resubscribe to these services as needed.
Note that they're not cracking down on password sharing (e.g. share your password and we'll cancel the account) but trying to monetize it by getting sharers onto higher cost plans.
I've been saying for a couple of years that NFLX doesn't mind password sharing because sharing the password creates a pretty substantial social cost to churning (by extension, a higher subscription price is more tolerable).
Wasn't Netflix actively encouraging the sharing? With that Who is watching screen? I think that was part of the plan: suck the oxygen from the competition. Because you can only stream as much per day.
Thanks for your writeup, liked it.
IMO If Netflix really knew how many people were password sharing then they would be able to clamp down on it.
Besides Netflix has subscription plans that include 1, 2, or 4 streams. I think the real problem Netflix has is people just don't watch it that much and keep it because it's cheap. That's why people are willing to share passwords.
Companies like WBD and DIS have much more extensive catalogs including huge franchises (DC, Marvel, Star Wars, Harry Potter, etc) which are easier to build upon and generate a ton of revenue in perpetuity. Unless Netflix can do that (which is even harder to do now with the movie theater business suffering) I don't see them having any real advantage. It's also super easy to cancel and resubscribe to these services as needed.
Paying to watch youtube? Craziness!! Get a free adblocker!
I know I'm totally out of touch with mainstream mores; you don't think that it's unethical to share passwords?
Do you want to say that WBD is to cheap compared to NFLX or other way around?
Note that they're not cracking down on password sharing (e.g. share your password and we'll cancel the account) but trying to monetize it by getting sharers onto higher cost plans.
I've been saying for a couple of years that NFLX doesn't mind password sharing because sharing the password creates a pretty substantial social cost to churning (by extension, a higher subscription price is more tolerable).