Netflix bans password sharing, angering and confounding some.
Netflix Password Sharing Policy: Netflix has implemented a new policy in the U.S. to restrict password sharing. Users streaming at a different location for more than 31 days must either obtain a separate account or pay $7.99/month to be added to the main account.
User Reactions: Longtime customers express discontent on social media over the crackdown. Some threaten to cancel or switch to competitors like Disney Plus and Max, citing the additional cost as a primary concern.
Travelling Nurse's Perspective: Brandy Andersen, a travelling nurse, is upset about being unable to stream on the road without incurring extra charges. She plans to cancel her $19.99/month premium plan, stating that she won't pay an additional $7.99.
Netflix's Strategy: Netflix initiated testing in smaller markets last year and extended the enforcement to Canada. Analysts predict some initial subscriber loss but anticipate a rebound, emphasising the importance of compelling content to attract new users.
Analyst Insights: Analyst Rich Greenfield suggests that Netflix should focus on creating popular and high-quality content to entice users into getting their own accounts rather than solely relying on password sharing.
Public Reaction: A survey indicates that 40% of respondents don't plan to make changes to their Netflix subscription, while 30% would consider family or group plans. About 15% expressed an intent to cancel or leave Netflix.
Revenue Impact: Some subscribers welcome the crackdown on "freeloaders," hoping it will lead to increased revenue for their favourite shows and prevent further rises in monthly fees.
Global Impact: Netflix acknowledges that around 100 million people worldwide use borrowed accounts. The company faces mixed reactions, with some users supporting the effort to address freeloaders, while others criticise the additional cost and restrictions.
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