Mark Mahaney, Senior Managing Director of Evercore ISI, discusses changes to Netflix’s subscription strategy and Amazon’s equity popularity.
Netflix has stricter policies regarding account sharing. The company applies the new rules only in some markets, but may show broader developments.
Streaming companies now allow people living together to share their accounts through different profiles and multiple streams. For example, with Netflix, you can watch two screens at the same time on the standard plan and four screens at the same time on the premium plan.
“These are very popular, but they’re also confusing when and how Netflix can be shared,” said Chengyi Long, director of product innovation at Netflix, “to share Netflix outside the home.” “Pay for” in a post titled.
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The confusion is focused on sharing non-family accounts that Netflix does not allow. According to the Netflix Terms of Service, “Netflix Services and content accessed through our Services may not be shared with anyone other than your home.”
The Netflix logo will appear on the Netflix, Inc. building on October 19, 2021 in Sunset Boulevard, Los Angeles, California. (ROBYNBECK / AFP via Getty Images / Getty Images)
Netflix has enacted new policies to curb out-of-home use and account sharing.
“Last year, we worked on ways to make it easier and safer for members to share outside the home, and at the same time pay a little more,” Long said in a statement.
“Function” has been tested for members of Chile, Costa Rica and Peru. As a result, as Long explains, for an additional fee, the owner of the primary account can add up to two users outside the household.
- Add additional members. Members of the Standard and Premium plans can add up to two sub-accounts that do not live together. Each has its own profile, personalized recommendations, logins and passwords. In Chile it is 2,380 CLP. US $ 2.99 in Costa Rica and 7.9 pens in Peru.
- Transfer the profile to your new account. Members of the Basic, Standard, and Premium plans can allow users who share an account to transfer profile information to a new account or a sub-account of additional members. This preserves your display history, My Lists, and personalized recommendations.
Needless to say, users aren’t happy, as the Twitter protest flow shows.
“Context: Netflix is currently charging people to share your account with others outside your household. It cancels their subscription to customers in addition to their monthly fee increases. I’m letting you. ” As one tweet claimedHas won almost 15K likes.
One of the most difficult questions is how enforceable this new policy is.
John Helixon, Field CISO, executive advisor to cybersecurity firm Coalfire, told Fox News:
Reed Hastings, CEO of Netflix. (Getty Images / Getty Images)
“They are currently tracking many details of all viewing activities, such as the location of the viewer via IP address, the type of device used during viewing, the title being viewed, the date and time of all activities, etc. “There is,” Helixon said.
“Using a VPN [Virtual Private Network] Technology can make it more difficult for Netflix to track and limit sharing, but this is generally beyond the skill of the average consumer, “he added.
And what is your long-term plan?
According to Helixon, “I think the long-term effort here will be Netflix’s ability to eventually turn off the feature after full adoption and convert all sub-accounts to full paid subscribers.” ..
In essence, that means an increase in current income, but it’s also a way to increase future income, Helixon added.
Games that are included in your subscription and have no ads, extra charges, or in-app purchases can be played on multiple devices in the same account and have the same parental control features in your child’s standard Netflix profile. (Netflix / Getty Images)
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But Netflix is also at risk of losing subscribers, Wedbush Securities research analyst Michael Pachter told The Wall Street Journal.
“I believe crackdowns on password sharing will increase churn,” Pachter said.
This is all because Netflix faces intensifying competition with Disney +, HBOMax and Amazon’s Prime Video.
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And that’s when Netflix raised the price of its monthly plan in January. The base plan for US customers has increased from $ 1 to $ 9.99, the standard plan has been raised from $ 13.99 to $ 15.49, and the premium plan has been raised from $ 2 to $ 19.99.
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