2023-04-19 13:34:00
Account-Sharing
Throwing out Netflix friends turns out to be a success – and is getting closer and closer in Germany too
No more cheap streaming: Netflix wants to close deals with stingy viewers and introduce an additional fee.
© AntonioGuillem / Getty Images
A change for Netflix customers in Germany is getting closer. Anyone who shares their account will soon no longer be able to avoid paying an additional fee. It’s a much-needed lever for Netflix to deliver growth.
Netflix has been struggling with the most important currency for the streaming service for a long time: growth is stagnating. While steadily increasing subscription numbers were the norm for years, the source of endless new customers for Netflix has long dried up. But that was exactly the reason why the stock market always went reliably in one direction. Now that Netflix is feeling the effects of the lack of new deals financially from all sides, the company is looking for a way out – and is fleeing forward.
Additional fee for shared Netflix accounts expected by the end of June
After years of telling customers that it was no problem to share an account’s password with friends and family free of charge, the emergency brake was pulled in some countries as a test. In Europe, the company made a start with Spain and Portugal (account sharing was prevented in the first European countries). Since February, an additional four to six euros have been due there if you share the account with a person who does not live at the account holder’s main location. A maximum of two people are possible in the most expensive tariff, there are different measures for control.
To the chagrin of those still awaiting the implementation of the new, very inconvenient rules, the company reports in its latest announcement to investors: “In the first quarter we introduced paid sharing in four countries and are satisfied with the results. We are planning a broad Launch, also in the US, in the second quarter.”
“Broad introduction” probably also means Germany. In this country, monthly additional costs of six euros per external person can be expected if Netflix is based on the prices in Spain. In addition, there are various limitations in terms of functionality that make the “piggyback” subscription less attractive than it was before. What is meant, for example, is a fairly strict restriction to just one device on which content can be consumed at the same time.
Advertising subscription strengthened, but still with disadvantages
It is clear what Netflix wants to achieve with this: either additional income or new customers who have so far been hiding from other subscribers. To attract them, Netflix is already boosting the cheapest subscription, which is associated with the broadcast of commercials.
The company wants to noticeably increase the video quality and allow the creation of two profiles. Apparently, this should persuade many who have made up their minds to leave Netflix when the new rules are introduced to stay. However, the advertising subscription in particular has other disadvantages that are all the more difficult to accept when you come from one of the premium tariffs (the new tariff is really that annoying). The resolution and number of simultaneous streams are actually the least of the problems, the missing download function is more serious.
Netflix announces in the message to investors that it is firmly expected that the number of subscriptions will initially decrease after the introduction of the new rules. This has already been noticed in the test markets. At the same time, the company is reassuring that after an initial wave of layoffs, there have been many returnees who would sooner or later set up accounts again. Canada serves as a particular example, as Netflix expects the results there to provide a preview of the impact in the US. They now have more paying customers than they did before the lockdowns were introduced, and sales growth is ahead of the core US market.
No more DVD shipping
One way or another, Netflix will soon forego a few million. Because after 25 years, Netflix wants to send the last DVD via DVD.com on September 29, 2023. Although the business has hardly played a role in recent years, Netflix has still achieved significant sales with its former core business. Last year, at least 145.7 million US dollars. But Netflix writes that the business will shrink in the foreseeable future and that it is therefore no longer worthwhile.
Also read:
Netflix advertising subscription: So much advertising is really coming at you – and these other disadvantages
Netflix was cheap, convenient, and had it all—none of that is true today
Safe from “Squid Game” and Co: How to block Netflix content for your children – and only for them
#Netflix #sets #deadline #account #sharing #celebrates #success