For a very long time, since the launch of Netflix as a video streaming platform, many users have ended up paying for the most expensive offer and then sharing their IDs with their friends and loved ones. It’s a much more affordable alternative than if they had to pay for their own subscription, but the company doesn’t like that anymore (too) today.
Netflix could win a lot with a paid password sharing feature
Netflix recently revealed that it is testing a paid password sharing feature. Users could share their account, but “child accounts”had to pay, of course, a fraction of the price of a regular individual account. And it turns out that this function, if fully and correctly implemented, can bring a lot of money to the company.
But could just as easily lose a lot
According to estimates by American analysts Cowen & Co., if Netflix implemented this option worldwide, it could net the giant a whopping $1.6 billion a year. However, not all analysts share this optimism. According to other industry experts such as Benchmark Co., this feature could have quite the opposite effect of cannibalizing the growth of paying users, and in the end, Netflix may only get a 4% increase in its revenue.
In any case, we’ll have to wait to find out the findings of the current test on Netflix with this paid password exchange. If customers are found, the platform will certainly decide to continue working by rolling it out in more countries. Would you like to share your password, or would you rather have your own account (and pay full price)? In any case, it is difficult to understand how this could end up on a global level for the platform. By trying to block the thing too hard, she could lose the game.