Netflix played with fire and did not get burned. Netflix Transmission Services USA recorded a profit in 2023, as documented by the Mercantile Registry, of 690.6 million dollars. This figure represents an increase of 5.2% compared to the previous quarter, with a profit of 10.6 million. That is 12.7% over one year. This growth breaks with the most gloomy predictions that, in USA, prohibiting the possibility of sharing accounts would lead to massive losses and millions of dollars.
The reality is that Netflix is in better shape than it was a year ago. Indeed, the pre-tax profit actually amounts to 14.2 million, which represents a growth of 51% compared to the same financial year last year. Does this send a dangerous message to other services such as Disney+, MAX, Amazon Prime Video, SkyShowtime or Apple TV+? It is clear: if being more restrictive leads to better revenues, the path seems clear.
Netflix is coming to USA… and the rest of the world
For decades, USA has been labeled a “pirate country” or a “theft country,” one that doesn’t like to play by the rules and pay religiously month after month. We assume Netflix USA disagrees, looking at its record revenue. Even its staff in our country has increased, from 52 to 61 people.
The blocking of the sharing accounts generated a great deal of controversy due to the brand’s origins, when it promoted “Netflix and coverage” or “My home is your home.” These corporate messages have given way to “Netflix home” or even “home devices”, those that imposed geolocalized usage restrictions. The cheapest packages with advertising clearly show that USA likes to have its own account.
And in fact, outside our borders, the model works: during the second quarter of 2024, The company added nearly eight million more subscribers, reaching 277 million worldwide.In terms of global profits, Netflix earned $9.56 billion during this quarter, or a net profit of $2.6 billion.
Where does Apple stand in all this?
Pending further interface changes, the “biggest update in a decade”As the company itself announced, Apple allows up to five family members to share access to Apple Originals movies and TV shows on Apple TV+ and Apple services.
What services with these? The usual ones: Apple Music, Apple Arcade, Apple News+ and even Fitness+. Remember that all the services associated with the iCloud+ plan allow you to share your subscriptions and each person sees their own preferences and recommendations, not those of the whole family. In other words, no member can see another member’s playlists or photos without express permission or a shared link.
Netflix isn’t that open. If you want to share your Netflix account with someone who doesn’t live with you, you’ll have to pay to add an additional subscriber, both in the Standard and Premium plans.You must generate an invitation pass and the subscriber will then have to validate it and log in to the owner’s account. But that person won’t even have the option to add additional packages or offers.
In any case, Netflix has figured out how to increase its revenue and therefore its profits. It has won its war to block shared accounts and users have lost something more than just “saving money”: saving time, gaining conviviality. And this is something where Apple is ahead with many advantagesregardless of net income.
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