How to prevent sharing of passwords for streaming services? Netflix will begin a new test shortly: will allow users who have a subscription to pay something extra to officially share the vision with people outside the family. AND limit the damage caused by swindlers passwords. Even if the approach seems more and more conciliatory than belligerent.
The experimentation will start in 3 markets (Chile, Costa Rica and Peru) and according to the words of Chengyi Long, head of product innovation within the giant founded by Reed Hastings, it will be “a simple and safe mechanism”. It will then be understood if and how to expand the test to other markets and thus make the ai option available nearly 222 million subscribers worldwideof which over 4 in Italy.
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The platform’s terms of service currently prohibit sharing the details of a accounts with “individuals outside their own household”. Yet, both unofficially and through somewhat more structured platforms working on gray territory, this practice is now a habit. It has also taken root due to the same rather permissive attitude of Netflix: if on the one hand it has taken and takes away cash flow from the group, on the other it has undeniably been an important and parallel factor over the years in the construction of an imaginary linked to the series, to movies and characters from the platform universe. A bit like giants like Amazon have worked for years at a loss, with the sole aim of consolidating their position in the sector, even Netflix has long accepted these sharestrusting in popular culture to fuel discussions (especially social) around its products and accepting the risk of having an audience much wider than the actual audience of payers.
The problem is that this attitude it now risks limiting growth margins of the same paying users, who after the lockdown boom of 2020 are struggling quarter by quarter to reach the thresholds set by stock market analysts. Basically, a user who shares the password is a potentially paying user and the one announced by Variety it is therefore an attempt to monetize it. In fact by replicating the model of the same platforms mentioned above: the main subscriber pays a little more to be able to share and maybe he gets the small sums back from his friends beneficiaries. It is to be imagined that sooner or later Netflix will also introduce a mechanism to internally manage this division of spending.
“We’ve always made it easy for people living together to share their Netflix account, with features like separate profiles and multiple concurrent views in our Standard and Premium plans – Long wrote in a blog post about the new experiment – While they were extremely popular tools, they also created some confusion about when and how to share Netflix. As a result, accounts are shared between families, impacting our ability to invest in great new movies and TV for our members. ” The message is clear: in addition to convincing new subscribers, it is necessary to optimize the current Netflix audience, which as mentioned does not correspond to that of paying users.
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This feature, baptized in English Add an Extra member, will therefore allow users with Standard and Premium plans to add up to two accounts of people they do not live with, each with its own profile, personalized suggestions and access details. All of this, of course, at a lower cost than a new subscription: an additional member will cost $ 2.99 more in Costa Rica2380 Chilean pesos (about 2.8 euros) and 7.9 Peruvian sols, that is less than 2 euros.
As usual, no one knows how it will go: Netflix conducts many tests of this type, adjusts the costs of subscriptions depending on the markets (the latest increase in Italy was last October, with the increase of one and two euros for the Standard and Premium plans) and therefore it will be necessary to understand if and how the mechanism will prove to be able to recover a certain profitability compared to the non-paying audience that uses Netflix programs. Long confirmed that “we will work to understand the usefulness of these two features for members of these 3 countries, before making changes anywhere else in the world ”.
Netflix is also testing other new features for these additional members, such as the ability to transfer their profiles to new accounts, should they want to open a personal one, or switch to another subscription, always as additional members. Not quite a battle, more a long and complicated nudging maneuver.