Category Archives: Netflix

Netflix Is Increasing The Price On its Plans

Netflix said its efforts to limit password sharing delivered stronger customer growth than expected in the third quarter, and it announced plans to increase some prices in the U.S., U.K., and France, The Wall Street Journal reported.

According to The Wall Street Journal, shares rose more than 12% in after-hours trading. The streaming giant added 8.8 million subscribers in the third quarter with customer growth in every region, after attracting 2.4 million net new subscribers during the same period a year earlier.

The company plans to immediately raise prices for its basic plan in the U.S., which is no longer available to new customers, to $11.99 from $9.99 and up the cost of its premium plan to $22.99 from $19.99. It is also increasing some prices in the U.K. and France, though the cost of its ad-supported and standard ad-free plans are unchanged.

The price increases are a sign of streamers’ efforts to improve profitability and wean consumers off the low monthly subscription fees that drew users away from pricey cable bundles in the early days of streaming.

While Netflix’s password-sharing crackdown may not be popular with consumers, it’s seemingly having the intended effect for the company’s bottom line, IGN reported.

Netflix revealed its third-quarter earnings today, announcing that it added 8.8 million new subscribers last quarter, marking its best quarterly subscriber growth in more than three years. For comparison, it added 2.4 million subscribers during the same period last year.

According to IGN, in the U.S., the price of the basic plan – the lowest-cost tier without ads – which is no longer available to new subscribers – will jump from $9.99 to $11.99. The premium plan, which allows users to watch in Ultra HD across four supported devices at a time, will go from $19.99 to $22.99.

In the U.K., the basic plan will jump up from £6.99 to £7.99, while the premium plan will go from £15.99 to £17.99. In France, the price will increase to 10.99€ for the basic plan and 19.99€ for the premium plan.

Gizmodo has the snarkiest headline regarding Netflix: “Things Are Going Great at Netflix, So It’s Raising Prices”.

Looks like that password sharing crackdown worked: Netflix has reported adding nearly nine million new customers this quarter, bringing its total number of subscribers to 247.2 million as of September 30. Some customers, however, will find their plans are about to go up in price, Gizmodo reported.

According to Gizmodo, today’s letter to shareholders praised both Netflix’s original titles and its licensed content, calling out shows that did big numbers in Q3 like One Piece, The Witcher, Love at First Sight, and Suits. It noted that the ad plan has continued to rise in popularity, and that “our $6.99 per month ads plan in the U.S. continues to support our ads plan growth.” The streamer also touted this plan in particular as “much less than the average price of a single movie ticket.”

Personally, I think raising the price of Netflix subscriptions is going to cause Netflix to lose customers. Nobody likes to be hit with unexpected, increased, fees that they cannot easily opt-out of. If Netflix was smart, it would realize that increasing the cost of their service is going to push a lot of people away from Netflix.

Netflix Subscriptions Jump After Password-Sharing Crackdown

Netflix’s long-awaited crackdown on password-sharing in the U.S. delivered a windfall of new subscribers in its earliest days, according to new data, The Wall Street Journal reported.

According to streaming analytics company Antenna, the streaming giant amassed more new subscriptions in the U.S. between May 25 and 28, shortly after Netflix notified users of the limits, than in any other four-day period since Antenna began compiling such data in 2019.

The change, which is upending yearlong password-sharing arrangements between families and friends, is critical to Netflix’s growth: The streaming giant and its rivals are struggling to bring in new subscribers, particularly in the U.S. market, where consumers can choose from a range of services that are easy to turn on and off.

Netflix has said more than 100 million people around the world watch its content using borrowed passwords.

According to The Wall Street Journal, the monthly cost of sharing with an extra person is $2 less a month than a basic subscription, and $1 more than the ad-supported plan, which Netflix introduced late last year in another effort to boost revenue and appeal to price-conscious customers.

Variety reported that according to New York based Antenna, its estimates are based on millions of permission-based, consumer opt-in, raw transaction records, which are sourced “from a variety of data collection partners.” The data includes online purchase receipts, credit, debit and banking data, and “bill-scrape data.”

Based on the most current Antenna data available, Netflix average daily sign-ups reached 73,000 from May 25-28, a 102% increase from the prior 60-day average. That was more than the spikes in subscriber sign-ups Antenna recorded during the initial U.S. COVID-19 lockdowns in March and April 2020.

Engadget reported that while account cancellations also rose in that period, Antenna said sign-ups outpaced those figures. This was the biggest increase in new Netflix account sign-ups in the US since COVID-19 lockdowns began in March and April of 2020, Antenna noted.

According to Engadget, it is worth bearing in mind that this is not official data from Netflix. We’ll have a clearer idea of how account sharing changes are starting to impact Netflix’s bottom line when the company reports its next quarterly earnings, likely in mid-July.

In my opinion, despite the initial pushback against sharing a Netflix account, it appears that plenty of people decided to give in and pay Netflix for a subscription. Right now, that looks like a win for Netflix. That said, Netflix should not assume that every month will have as many subscriptions. At some point, the company will run out of people who want to subscribe to Netflix.

Netflix Cracks Down On Password Sharing In Four New Markets

Netflix announced: We’ve always made it easy for people who live together to share their Netflix account with features like profiles and multiple streams. While these have been hugely popular, they’ve also created confusion about when and how you can share Netflix. Today, over 100 million households are sharing accounts – impacting our ability to invest in great new TV and films.

So over the last year, we’ve been exploring different approaches to address this issue in Latin America, and we’re now ready to roll them out more broadly in the coming months, starting today in Canada, New Zealand, Portugal and Spain. Our focus has been giving members greater control over who can access their account.

Set primary location: We’ll help members set this up, ensuring that anyone who lives in their household can use their Netflix account.

Manage account accesses and devices: Members can now easily manage who has access to their account from our new Manage Access and Devices page.

Transfer profile: People using an account can now easily transfer a profile to a new account which they pay for – keeping their personalized recommendations, viewing history, My List, saved games and more.

Watch while you travel: Members can still easily watch Netflix on their personal devices or log into a new TV, like at a hotel or a holiday rental.

Buy an extra member: Members on our Standard or Premium plan in many countries (including Canada, New Zealand, Portugal and Spain) can add an extra member sub account for up to two people they don’t live with – each with a profile, personalized recommendations, login and password – for an extra CAD$7.99 a month per person in Canada, NZD $7.99 in New Zealand, Euro 3.99 in Portugal, and Euro 5.99 in Spain.

TechCrunch reported that Netflix is rolling out paid sharing, otherwise known as Netflix’s crackdown on password sharing, to more countries, including Canada, New Zealand, Portugal and Spain, TechCrunch reported. The company had previously tested paid sharing in select markets, including Chile, Costa Rica, Peru, and elsewhere in Latin America.

According to TechCrunch, Netflix is also offering a few details about how paid sharing will work, in hopes of quelling a subscriber backlash over the anticipated changes that have some threatening to cancel their Netflix accounts.

The news follows a leak describing password restrictions that came out earlier this month, prompting subscriber complaints. Netflix subscribers were also upset about how travel restrictions would work under the new policy.

Engadget reported that Netflix isn’t shy about its rationale. As it has argued in the past, Netflix claims account sharing is hurting its bottom line. The 100 million-plus households sharing accounts are “impacting [Netflix’s] ability” to invest in new content, according to director Chengyi Long. In theory, paid sharing improves the company’s revenue without forcing affected users to pay full price for a completely separate account.

Personally, I think Netflix designed this as a way for people to remove those who have been using the person’s paid account as a “freebie”. Or, users might see this as a good reason to cancel their Netflix account – especially if kicking out the freebee users doesn’t actually result in new Netflix shows.

Netflix Issues Rules Regarding Account Sharing

Netflix has unveiled its plans to prevent password sharing between people in households outside of an account owner’s primary location, IGN reported.

According to IGN, the FAQ pages for US and UK Netflix subscribers currently highlight the devices that may require verification if they are not associated with the Netflix household or if they attempt to access an account outside the subscriber’s primary location for an extended period of time.

Subscribers who want to share their Netflix account with someone who doesn’t live with them can add an extra member to their account, IGN noted. Members can also transfer a profile from an existing account elsewhere, allowing them to keep their personalized data on another account.

The plan to convert “borrowers” – those who are currently using Netflix accounts that are owned by separate households – to paid subscribers is expected to roll out by the end of March, with the introduction of more account sharing restrictions and extra member fees in more countries.

Gizmodo reported that without any official announcement, Netflix updated its support page to detail how it plans to restrict users from sharing an account with folks outside their immediate household. However, the company made changes to the page after it was initially posted, and it still remains unclear just how upcoming restrictions on password sharing will work.

The Netflix website posted what appears to be the current information about account sharing on its website. There is a post titled “Sharing Your Netflix account”. That information includes:

  • A Netflix account is for people who live together in a single household.
  • Sharing Netflix with someone who doesn’t live with you

People who do not live in your household will need to use their own account to watch Netflix.

It is easy to sign up for Netflix and we offer a variety of plans. As always, members can change plans or cancel at any time.
When a device outside of your household signs in to an account or is used persistently, we may ask you to verify that device using the account is authorized to do so.

Netflix will not automatically charge you if you share your account with someone who doesn’t live with you.

  • Verifying a device

When someone signs into your account from a device that is not associated with your Netflix household, or if your account is accessed persistently from a location outside of your household, we may ask you to verify that device before it can be used to watch Netflix. We do this to confirm that the device using the account is authorized to do so.

  • How Netflix detects devices within a household

We use information such as IP addresses, device IDs and account activity from devices signed into the Netflix account.

Netflix Announces It Will Charge An “Extra Home” Fee

Netflix announced it has been “carefully exploring” different ways for people who want to share their account to pay a bit more. In March, they added an “add extra member” feature in Chile, Costa Rico, and Peru. From next month, Netflix will launch an alternative “add a home” feature in Argentina, the Dominican Republic, El Salvador, Guatemala, and Honduras.

Here’s how this “add a home” feature will work:

One home per account: Each Netflix account – whatever your plan – will include one home where you can enjoy Netflix on any of your devices.

Buy additional homes: To use your Netflix account in additional homes, we will ask you to pay an extra [219 Pesos per month per home in Argentina / $2.99 per month per home in the Dominican Republic / $2.99 per month per home in Honduras / $2.99 per month per home in El Salvador / $2.99 per month per home in Guatemala]. Members on the Basic plan can add one extra home, Standard up to two extra, and Premium up to three extra.

Travel Included: You can watch while outside the home on your tablet, laptop, or mobile.

New Manage Homes Feature: You will soon be able to control where your account is being used – and remove homes at any time – from your account settings page.

The Verge describes the “extra home” fee as “Netflix’s latest anti-password sharing test”. In March of 2022, Netflix very specifically described that Members on the Standard and Premium plans will be able to add sub accounts for up to two people they don’t live with – each with their own profile, personalized recommendations, login and password.

The Verge also reported what Netflix’s support page says about Adding an extra home:

“Beginning August 22, 2022, when you sign into Netflix on a TV outside of your home, you will see the option to add the extra home for an additional fee per month.

“If you will only be using this TV for a limited time, you can watch Netflix for up to 2 weeks at no extra charge as long as your account has not been previously used in that location. After that time, the TV will be blocked unless you add the extra home.”

In addition, Netflix explains how it detects homes:

“We use information such as IP addresses, device IDs, and account activity.

“If you are using a device within your included home and still see a message that says that there are too many homes using your account, you can:

“Make sure that the device is connected to the same internet connection as the other devices in the home.

“Make sure that the device is not connected to a VPN, proxy, or any unblocked service.”

GameSpot reported that Netflix’s share price dropped almost 70% this year as a result. The company said that password sharing has been particularly high in Latin America, hence testing these initiatives there first.

In my opinion, if Netflix feels that these measures work well in the countries that Netflix has selected, it might try and impose those same restrictions in other countries as well. I wouldn’t be surprised if Netflix users in the US get the “extra home” charge imposed upon them eventually.

Microsoft and Netflix Partner For New Ad-Supported Tier

Microsoft posted on the Official Microsoft Blog a post titled: “Netflix names Microsoft as partner for new consumer subscription plan”. Part of it says:

We’re thrilled to be named Netflix’s technology and sales partner to help power their first ad-supported subscription offering.

At launch, consumers will have more options to access Netflix’s award-winning content. Marketers looking to Microsoft for their advertising needs will have access to the Netflix audience and premium connected TV inventory. All ads served on Netflix will be exclusively through the Microsoft platform. Today’s announcement also endorses Microsoft’s approach to privacy, which is built on protecting customer’s information.

This is a big day for Netflix and Microsoft. We’re excited to offer new premium value to our ecosystem of marketers and partners while helping Netflix deliver more choice to their customers…

Netflix posted on their About Netflix website a post titled: “Netflix to partner with Microsoft on new ad supported subscription plan”. It was written by Chief Operating Officer and Chief Product Officer of Netflix, Greg Peters. Part of the post says:

In April, we announce that we will introduce a new lower priced ad-supported subscription plan for consumers, in addition to our existing ads-free basic, standard and premium plans. Today we are pleased to announce that we have selected Microsoft as our global advertising technology and sales partner.

Microsoft has the proven ability to support all our advertising needs as we work together to build a new ad-supported offering. More importantly, Microsoft offered the flexibility to innovate over time on both the technology and sales side, as well as strong privacy protections for our members…

The Verge reported that Microsoft will become Netflix’s “global advertising technology and sales partner” upon rolling out the cheaper option. (This is, of course, referring to the “ad-supported” option.)

According to The Verge, Netflix’s decision to choose Microsoft: recalls a close relationship between the two for streaming launches. The first version of Watch Instantly that streamed mostly B-movies used Microsoft’s Silverlight technology to deliver video instead of the more common Flash Player until it was replaced by HTML5, and the Xbox 360 was the first console with an HD Netflix streaming app.

How well will the “ad-supported” subscription plan go over with customers? That remains to be seen. It is possible that people who want to watch things on Netflix, but who don’t have a lot of money to spend on subscription services, might give it a try.

On the other hand, Netflix and Microsoft could potentially stuff way too many ads into the “ad-supported” plan. Doing so would be a big mistake, especially if ads pop up in Netflix’s TV shows or movies, entirely breaking the immersion that people want to feel while being entertained.

Netflix Lays Off Estimated 150 Staffers

Netflix is laying off approximately 150 employees across the company, according to an internal memo sent Tuesday and obtained by The Hollywood Reporter. This round of layoffs follows at least 10 full-time staff and contractors working under the editorial division on April 28, 2022. Those workers were part of Tudum Studio, which Netflix launched in December of 2021.

NPR reported that layoffs of employees and contractors for the Netflix site Tudum made waves online. People criticized the company for letting go of staff who had been recently recruited and for the lack of internal marketing of their work.

According to NPR, these layoffs are reflective of a change that Netflix is undergoing. In the wake of controversial programming on its platform, the tech giant recently altered its corporate culture memo to say employees may have to work on projects they find harmful.

Los Angeles Times reported that a spokesperson for Netflix provided the following statement:

“As we explained on earnings, our slowing revenue growth means we are also having to slow our cost growth as a company. So sadly, we are letting around 150 employees go today, mostly U.S.-based. These changes are primarily driven by business needs rather than individual performance, which makes them especially tough as none of us want to say goodbye to such great colleagues. We’re working hard to support them through this very difficult transition.”

According to the Los Angeles Times, a contractor who was part of a team that ran social media content promoting LGBTQ storytelling said, “This felt more of a matter of when, than if.” The contractor, who was not allowed to speak publicly, first became aware of the layoffs through the news, and hours later attended an all-hands on meeting where a group of people were informed they were losing their jobs.

Animation Magazine reported that Netflix was also eliminating two percent of roles from its animation workforce, largely in the U.S. According to Animation Magazine, at the beginning of the month, a trio of animated Netflix Kids & Family projects were nixed from the slate: Jeff King’s Dino Daycare (part of kids’ animation whiz Chris Nee’s initial slate with the streamer), Meghan Markle’s Pearl and Jaydeep Hasrajani’s Boons and Curses.

All of this comes after Netflix cracked down on account sharing (with someone outside of your household).

The Hollywood Reporter stated that in April, during its first-quarter earnings announcement, Netflix revealed it had lost 200,000 subscribers in the quarter and expected to lose an additional 2 million during the second quarter.