433
Netflix Starts Booting Subscribers Off Cheapest Basic Ads-Free Plan
(www.macrumors.com)
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 05 Jul 2024
433 points (98.2% liked)
Technology
59674 readers
1928 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 1 year ago
MODERATORS
They've tested the waters, and people will most probably wind up staying, as their password crackdown demonstrated.
Do you have any data that shows Netflix didn’t lose subscribers in markets where they cracked down on password sharing? I keep seeing people saying this is the case, but all the news stories I’ve read say that Netflix is only adding subscribers in the cheaper markets (like India and South America).
I don't have a source, but it wasn't that Netflix didn't lose subscribers, it was that their revenues grew. Part of that was charging subscribers more, but a lot of that was the new ad-supported plans netted them more money than basic ad-free plans. Which is probably why they're now sunsetting the basic ad-free plans.
Slightly off topic, but starting 2025 they're going to stop providing quarterly subscriber numbers to focus on "other metrics" related to revenue and growth.
https://www.hollywoodreporter.com/business/business-news/netflix-to-stop-providing-subscriber-numbers-1235877111/
This is public record due to their financial reporting obligations as public company, but their password sharing crackdown resulted in not insignificant amounts of new subscribers.
Or at least, there was meaningful growth that occurred in time periods that aligned with those policies going into effect.
https://www.cnn.com/2023/06/09/business/netflix-password-sharing-results/index.html
That could be true, I was going on the fact of what they reported and how their stock jumped up because of what they said as well.
They'll never mention how many people left though (unless that info is out there too?)
https://www.reuters.com/technology/netflix-subscriber-growth-focus-gains-password-sharing-crackdown-seen-easing-2024-04-17/
Subscribers are subscribers are subscribers, the total is up so even if they lost some in the US/European market, the rest of the world makes up for it.
Emerging markets pay around $6 a month for Netflix. Basically the “password crackdown” markets are subsidizing the new subscriptions where Netflix is trying to gain a foothold. It’s the typical “get ‘em hooked, then start raising prices.”
https://www.hollywoodreporter.com/business/business-news/netflix-price-drop-international-password-sharing-1235332333/#!
Sure but if subscriptions were stagnating before and they're increasing more than ever, it ends up compensating for the loss of people who used to pay more.
Not only staying, they’ll stay and pay more