Other services deduct important content, and their own productions consume huge sums of money. Netflix was hit hard after the release of its latest quarterly results, identifying a major problem: 100 million shared accounts.
Additional costs are already in the works. The announcement of the financial results is recognized for Netflix with a real price crash of sometimes more than 25 percent. The news that the number of subscriptions is falling for the first time since 2011, also caused dissatisfaction. Like the company after just a few words in his Notice to Shareholders writes, they want to have identified “the large number of households sharing a bill” as a real evil.
Sharing this with people “not living in the same household” is loud Terms of Use actually banned, but according to the company very widespread. According to this data, there are currently 222 million paying households, but 100 million of these bills would be re-shared — 30 million of them in North America alone.
This is exactly where you see great potential for generating additional income. In its letter to shareholders, the group then provides a rather confused analysis: First, it admits that this kind of unintended sharing “probably contributed to our growth.” But then they conclude that the ability to share within a household caused confusion about “when and how Netflix can be shared with other households”. Therefore, “in the short to medium term” there will be a strong focus on how to “make the best money sharing”.
Since last year, there have been trials of levying fees for additional households in this area – in Costa Rica, Peru and Chile, another household can use the Netflix subscription for the equivalent of an additional fee of 2-3 euros. Two of these are allowed per account. Here the COO Greg Peters is a loud Business Insider a tip: “To make the expectations clear: I believe that we will try different variants for about a year and then implement everything so that we can roll out the solution worldwide.”
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