Netflix is the grand master of streaming, a mainstay in many households but unfortunately — for Netflix at least — not everyone pays for it. There are significant numbers of accounts that breach the terms of service by sharing passwords outside of a single home.
Previously, several attempts to reduce this have been only partially successful. More recently a strategy to allow multiple home sharing of accounts has been put forward: A paid secondary account.
In a letter to shareholders, the company outlines that while (in part due to the Ukraine crisis) the profits are below forecast levels, there is lost subscribers and a way to return to higher profits:
The big COVID boost to streaming obscured the picture until recently. While we work to reaccelerate our revenue growth – through improvements to our service and more effective monetization of multi-household sharing – we’ll be holding our operating margin at around 20%.
Further elaboration labels the engagement of shared accounts and monetisation a large opportunity for the streaming giant. I’m not sure about whether it will translate into the profit growth they believe it will.
If Netflix cracks down on password sharing, will you pay for access or abandon the platform?