🍿 2022-04-22 15:56:00 – Paris/France.
Netflix stock plummets following loss of subscribers 1:08
New York (CNN Business) — Shares of Netflix plunged this week after the platform reported its first loss of subscribers in more than a decade. There is one factor that the company has called revenue detrimental: the widespread sharing of passwords.
Does this mean the entity is about to kick millions of viewers out of shared accounts? Not exactly. But that could mean that Netflix subscribers around the world would have to make an effort to keep their kids, friends, or co-workers on their accounts.
For years, Netflix has allowed subscribers to share their passwords with little interference. In fact, the service admitted in its letter to investors on Tuesday that the policy likely helped fuel its growth by "getting more people to use and enjoy Netflix."
However, that growth has stalled, with Netflix saying on Tuesday that it is currently investigating the "best way to monetize the exchange." The company noted that of its 222 million paying households worldwide, it estimates "Netflix is shared with over 100 million additional households."
Could this be the end of Netflix password sharing?
What does this mean for your account? It's not yet clear, as Netflix is in the early stages of finding a way to make more money from sharing accounts.
Last month, the company said it had been working for a year on ways to "enable members who share outside their homes to do so easily and securely, while paying a little more". Translation: you will have to pay these additional people on your account.
The company launched two test features in three overseas markets called “Additional Member” and “Profile Transfer”. Costs vary based on a number of factors, but Netflix said features can be added for "a fraction of the price of a basic plan".
With "Additional Member", Netflix Standard and Premium subscribers can add up to two people who don't live with them to a single account.
These "additional" members will have full access to the main Netflix account and will have their own profiles and login. Additional subscriptions will not count towards Netflix's total paid subscribers.
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So if you have someone on your Netflix account who doesn't live in your household (a kid in college, a friend, a distant cousin, whatever), you'll pay more for their access.
The “Profile Transfer” option allows subscribers at any price level to transfer their profile information, i.e. their viewing history, to a new paid account.
Both features are currently being tested in Chile, Costa Rica, and Peru. Netflix typically tests new features in smaller markets before rolling them out more widely, and at this point it's unclear whether "Additional Member" or "Profile Transfer" will become a larger offering or be phased out. .
However, with the company's shares falling and investors questioning its future growth potential, it's a safe bet that these or similar options could be implemented sooner rather than later.
That's how Netflix goes, that's how Netflix goes Streaming
“Siempre hemos attempted to facilitate the use of the compartment dentro del hogar de un miembro, con functions como perfiles y transmisiones múltiples. Si bien estos han sido muy populares, han creado confusión sobre cuándo y cómo se puede compartir Netflix con otros hogares”, dijo la compañía on Tuesday. "Although we can't monetize everything at the moment, we think it's a great opportunity in the short to medium term. »
On the other hand, charging customers for the privilege of sharing their accounts could backfire. Netflix already raised prices earlier this year; additional costs could alienate your base.
The company is still in the early stages of finding a way to monetize password sharing, and if Netflix cracks down on the practice, other services will likely follow. As a reference in the world of Streaming, Netflix's decision could have industry-wide ramifications.
SOURCE: Reviews News
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