Netflix Unveils First Details of New Anti-Password Sharing Measures - Update: Netflix claims rules were posted in error

Netflix is the streaming giant led by greed. In their attempts to garner more money theyre going to lose millions. The traveler, the college kids, the ex-pats, the elderly (who aren't tech savvy using their children's accounts), etc. They may need a new CEO or it's all downhill from here.
 
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This is gonna cause a major inconvenience for folks, especially when they get locked out of their account.

And if they got to sit on the phone for hours waiting to get ahold of “Punjab Singh” in India who can barely speak English to get things straightened out.

Lots of accounts are gonna get closed.

Folks are already on the cliff with canceling their service cuz Netflix keeps canceling good shows.
 
I just get Netflix for like the 3 months that they actually have something to watch out of the year. Who needs Netflix year round, their quality has dropped immensely.
 
love netflix....enjoy the show diversity ...especially the Korean shows.... this doesn't bother me at all
 

Netflix To Launch Paid Password Sharing In U.S. In Coming Weeks As Part Of Global Rollout​

By Dade Hayes

Dade Hayes

Business Editor
@dadehayes

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April 18, 2023 1:20pm
Netflix

Netflix's LA headquarters buildingRobyn Beck/AFP via Getty Images
Netflix plans to phase in “paid sharing” — the company’s preferred term for cracking down on the loaning of login credentials — in the U.S. in the coming weeks.
The U.S. debut during the second quarter (April through June) is part of a “broad rollout” across the world in the current quarter, the company said in its quarterly letter to shareholders. “In Q1, we launched paid sharing in four countries and are pleased with the results,” the letter said.

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The news was delivered along with a mixed batch of first-quarter financial results, with subscriber gains and revenue coming in a bit shy of Wall Street expectations and earnings per share a bit better than expected.

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The decision to finally lower the financial boom on customers for sharing passwords followed a period of many years when the company winked at the practice as it was gaining scale. In recent years, the billions in lost revenue began to take on increasing importance, especially as financial pressures mounted in the increasingly competitive streaming sector. Co-CEOs Ted Sarandos and Greg Peters have both acknowledged that there could be a degree of backlash from some subscribers, but the long-term payoff remains a key strategic objective.
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Pricing has not yet been specified in all territories, but the company said it did expect a financial impact on second-quarter and third-quarter results. The timing of the big push in the second quarter is a bit later than previous plans for the first quarter, but the company believes the learning from existing tests will help it refine the setup as it goes global.
“We’re pleased with the most recent launches of paid sharing, and while we could have launched broadly in Q1, we found opportunities to improve the experience for members,” the shareholder letter said. “We learn more with each rollout and we’ve incorporated the latest learnings, which we think will lead to even better results.”
In order to implement the changes, the company continued, “we shifted out the timing of the broad launch from late Q1 to Q2. While this means that some of the expected membership growth and revenue benefit will fall in Q3 rather than Q2, we believe this will result in a better outcome for both our members and our business.”
The foray in Canada, New Zealand, Spain and Portugal in the first quarter persuaded Netflix execs that “we have the right approach” to the delicate task. More than 100 million households are currently engaged in password sharing, the company estimates, and it says it is merely trying to derive at least some revenue from those tertiary viewers.

“As with Latin America, we see a cancel reaction in each market when we announce the news, which impacts near term member growth,” the company said. “But as borrowers start to activate their own accounts and existing members add ‘extra member’ accounts, we see increased acquisition and revenue.”

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In Canada, which Netflix sees as a “reliable predictor” of the U.S. rollout, the paid subscriber base is now larger than before the password monetization scheme began. Revenue growth has accelerated in Canada and is now growing faster than in the U.S., the company said.

As the rollout continues, viewership stats from Nielsen could take a near-term hit, but is expected to rebound based on testing last year in Latin America, the shareholder letter noted.
 
Netflix subscriptions rise as password-sharing crackdown takes effect

Netflix has seen its four biggest days of subscriber additions in the four-and-a-half years that data provider Antenna has been tracking the service.

Lillian Rizzo
June 9, 2023


The Netflix crackdown on password sharing is in its early days in the U.S., but it appears to be having the effect the streamer was looking for – a boost to its subscriber base.

Since alerting its members in late May of its new password sharing policy, Netflix had its four single largest days of signing up U.S. customers since data provider Antenna began tracking the service. In that time, Netflix has seen nearly 100,000 daily signups on two of the days, according to the report from Antenna.

On May 23, Netflix began sending out emails to members that it was changing its sharing guidelines, namely that accounts were only to be shared within the same household.

"Your Netflix account is for you and the people you live with — your household," the company said in an email that has been sent to members since then.

As part of the new policy, members have two options for the people using their passwords outside of their household. Either transfer the profile to the person outside of their household so the person can begin a new membership that they pay for on their own, or the member pays an extra fee of $7.99 a month per person outside of their household.

Since the email began rolling out, average daily signups to Netflix reached 73,000, a 102% increase from the prior 60-day average, which surpassed the spike in sign-ups during the initial lockdowns of the pandemic, according to Antenna.

Streaming services like Netflix had experienced a big increase in subscribers in the early days of the pandemic when consumers were home during lockdowns. However that subscriber growth trailed off in the following years.

In 2022, Netflix began to see subscriber growth stagnate, and, like other media companies, it began homing in on ways to make boost revenue. In addition to cracking down on password sharing, Netflix also introduced a cheaper, ad-supported tier.

While Netflix's stock took a hit after reporting its first subscriber loss in a decade last year, it has been rebounding since then with the introduction of password-sharing guidelines and ad-supported streaming. Its stock hit a 52-week high on Friday, and is up more than 40% year-to-date.

The company has said that more than 100 million households share accounts -- about 43% of its global user base -- affecting its ability to invest in new content.

Netflix began rolling out password-sharing guidance in international markets earlier this year. It had delayed its crackdown on password sharing in the U.S. from the first quarter to the second quarter.
 
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