![]() Netflix says that cancel reaction to the password sharing limitation "continues to be low," exceeding its expectations. Subscriber growth comes after Netflix began cracking down on password sharing between households. Revenue came in at $8.54 billion, up from $7.9 billion last year. Netflix said that it added 8.8 million new subscribers, up from 2.4 million new subscribers in the year-ago quarter. Netflix announced the price hikes in its earnings call for the third quarter of 2023, which took place today. The $15.49 Standard plan and the ad-supported plan are limited to 1080p. The Premium Netflix plan is the only plan that provides access to 4K video streaming and spatial audio. Netflix no longer offers the Basic plan to new subscribers in the United States, but prices will presumably increase for existing subscribers. The ad-supported tier price will remain the same at $6.99 per month, as will the $15.49/month Standard plan. In the United States, the price of the Basic plan will increase from $9.99 to $11.99 per month, while the price of the Premium plan will increase from $19.99 to $22.99 per month. ![]() Prices will be going up for the Basic and Premium plans in those three countries. That may explain why the company doesn’t want to fixate on those price hikes too much.Netflix today said that it is increasing the cost of some of its subscription plans in the United States, the UK, and France. The hard truth for Netflix is that it can’t keep raising prices without exacerbating those other issues. People have a limited amount of money they’re willing to spend on streaming services, and each time the cost of Netflix increases, competing services and password sharing start to look like more compelling alternatives. In the end, this all comes back to price hikes. If you’re sharing a password with a friend or family member, I wouldn’t lose much sleep over it right now. Just as garden-variety price hikes might cause customers to flee, draconian account control measures could turn off paying subscribers as well. I suspect this is why Netflix is not moving all too swiftly on the password-sharing front despite its well-publicized experiments, with no plans to expand its crackdown in the United States for another year. A subscriber that shares their password with far-flung family members might be less likely to cancel even in the face of repeated price hikes. Password sharing could also a valuable weapon against churn, as Netflix customers are among the least likely to abandon their subscriptions on a seasonal basis. Some account sharers may not consider a subscription to be worth paying for at any price, and mechanisms to prevent it could also create new inconveniences for paying customers. ![]() It’s simply paying more attention now because subscriber growth has slowed, and those 100 million sharers seem like a juicy target for fresh revenue.īut this crackdown will have its challenges as well. The company says that the percentage of people sharing their accounts has not meaningfully changed over the years. Note that Netlfix is not dealing with a sudden spike in password sharing. It briefly tested a system last year that asked users to prove they’re not sharing passwords, and last month, it launched a test in Chile, Costa Rica, and Peru that lets password sharers pay for up to two extra accounts, each with their own profiles. In recent months, Netflix has started formulating a response. In its letter to shareholders, the company estimates that more than 100 million households worldwide are accessing someone else’s account, 30 million of which are in the United States and Canada. The newly competitive landscape also helps explain why Netflix is now looking to password sharers for a bailout. ![]()
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