Although streaming is not a new technology, it was during these years that it became extremely popular. One of the most popular streaming platforms in the world is Netflix, which has over 200 million subscribers worldwide. Although the company has managed to attract a large number of users who were not used to paying to watch movies and series, it faces a big problem with its new account sharing avoidance policy. .
[6 cosas que hago en Netflix en el día a día y que mejoran mucho la app]
Netflix has grown, in large part, by being able to share accounts
We could explain what Netflix account sharing is, but surely it’s not necessary because the reader of this article is very likely to do so, being the one who lends the credentials, or the one who receives them in ready. It’s handy for some people, especially those with friends or family who live far away, but it’s become so popular that it’s become a problem for Netflix.
The prices for this service were not particularly high in its early days, but gradually, relentlessly, it increased all over the world. This has caused more and more people to choose to share the accounts and, therefore, to share the expenses.
Netflix says stop
One of the main reasons why Netflix started limiting account sharing is that It affects your business model. The business is funded primarily by subscriptions, so any time an account is shared with other people, it means less potential revenue for the business.
In recent months we’ve seen moves that attempt to split revenue between subscriptions and advertising, with a new tariff that includes ads in exchange for a lower price in the monthly fee.
The problem is, on the internet, people are used to using free services with ads or paid services without ads, but you don’t often see paid services that also include ads.
The danger of losses
Netflix is facing a possibility that, until recently, no one considered: unsubscribing from the service.
The price increase has already started to put people off when it comes to paying monthly for a platform that was no longer the only option in countries like Europe. The full price price to be able to watch videos in 4K reaches 18 dollars per month, much higher than what HBO Max, Filmin, Apple TV+, Prime Video or Disney+ cost. In fact, with what those Netflix fees cost, a user could sign up for HBO Max and Disney+ at the same time.
Now one of the reasons people haven’t unsubscribed is starting to break down: being able to split the expense.
Netflix wants more and more people to sign up, but it does so at a time of extreme competition, with platforms like HBO Max or Filmin offering promotions with which we could have their services for 5 dollars per month for life.
Even Amazon Prime Video or Disney+ offer annual discounts, unlike Netflix.
[El fin de las contraseñas compartidas en Netflix está cerca, 2023 será todo un desafío para la plataforma]
user rule
Perhaps Netflix is very sure about the relevance of its catalog, but in recent months only Wednesday and the fourth season of Stranger Things have become global phenomena.
And its competitors have them too, as Amazon has shown with The Rings of Power, HBO Max with A Dance with Dragons, and Disney+ with its powerhouse franchises including Marvel and Star Wars.
If the Netflix catalog returns to offer the quality it had at the beginning, users may agree to pay more to be able to access it, but if not, if the quantity continues to be higher than the quality, then Netflix is going to have a hard time justifying people paying for your product instead of your competitor’s.
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