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Netflix password sharing is priced-in

3 points by Raed667 ↗ HN
I was chatting with a few friends (late 20s, tech workers) and every single one has cancelled their Netflix account after the new anti-password sharing news and uncertainty.

They were happy with the 13€ or 18€ plans when they were taking into account that they can be shared on 4 devices. It kept them paying for the service because they were sharing it with less financially stable friends.

Now that there is talk about that not being permitted, the pricing didn't make sense anymore.

How is Netflix so blind to this? They think they will gain those recipients of shared accounts, but in reality they're losing the ones who are actually paying for it.

2 comments

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robertknight
> How is Netflix so blind to this? They think they will gain those recipients of shared accounts, but in reality they're losing the ones who are actually paying for it.

I would guess they see it as a numbers game. Enforcing sharing restrictions more aggressively will cost them some customers who rely on it, and gain them some (maybe only a minority) who currently freeload. What will the overall result be? I don't know. I would have expected them to model various scenarios though and decide there was enough potential to make it worth trying.

aurizon
Netflix was baited with shows with limited resale rights - now expired. They saw this and frantically ramped up new show, some good, some bad. The film/TV majors then entered via streaming and began to take back the air Netflix needed. Now we have excess streams from all the film/TV giants - none of which Netflix can sell. Netflix stands alone. The competing streams are priced to deny Netflix much air = maximise sharing losses in some rational way. I think they have picked a reasonable shareway.