Netflix plans to crack down on users * * * enjoying account passwords. Because its users can't grow exponentially as in the past, Netflix decided to do something about * * * to enjoy the account password. Netflix plans to crack down on users * * * enjoying account passwords.
Netflix plans to crack down on * * * users whose account password is 1. On Tuesday, April 18, local time, Netflix released a cruel quarterly financial report. It is reported that this company has lost users for the first time in more than ten years, and the performance of streaming media still has a lot to read. Netflix also withdrew from the Russian market, which caused it to lose about1million users.
In short, the streaming media war is more and more similar to the hard and unarmed struggle between major services. And every incremental advantage will become more and more valuable. This is why Netflix has a lot to say about password enjoyment in its latest quarterly shareholder letter.
Netflix users * * * enjoy account passwords
In the second sentence of this letter to shareholders, Netflix first mentioned the issue of password sharing. The letter pointed out that the company's household penetration rate is high, and when families including a large number of * * * accounts are combined with competition, income growth is encountering resistance.
Netflix continues to promise its shareholders that it will strive to accelerate revenue growth again. As for how to do it, the company put forward the following methods: First, comprehensively improve the streaming media service; The other is to effectively realize the monetization of multi-family enjoyment.
In other words, Netflix needs the money of those who use other people's Netflix account passwords more than ever before.
What's the problem?
Netflix has tiered pricing packages, including those that allow the simultaneous use of two or four Netflix video sources. Of course, it depends on what kind of package the user pays. This means that at least some Netflix users are allowed to use passwords. However, Netflix's terms of service are also clear-"Netflix service and any content accessed through our service are for your personal and non-commercial use only, and may not be shared with individuals outside your family."
In Wednesday's announcement, 16, Netflix pointed out in a company press release that it will begin to prompt password holders who do not live in the "real family" of the main account holder to start paying. But it is limited to some places at present. Cheng Yi Long, director of product innovation at Netflix, pointed out at the company's press conference that this practice affected "our ability to invest in great new TVs and movies".
At present, Netflix has been tested in Chile, Costa Rica and Peru. It will ask people who borrow someone else's Netflix account password to start paying. At the same time, today's news should also make American password sharers pay attention to this news.
Netflix knows how many users are taking advantage.
Netflix's shareholder letter said that the company believes that all broadband families will be potential customers of Netflix. But those who use other people's Netflix accounts to log in hinder the realization of this goal.
The letter wrote: "In addition to our 222 million paying families, we estimate that Netflix is enjoying more than 654.38 billion families, including more than 30 million families in UCAN. Over the years, the proportion of account * * * in our paid members has not changed much, but coupled with the first factor, it means that it is more difficult to increase membership in many markets-this problem is covered up by the growth of our coronavirus pneumonia. "
It seems that Netflix will not let the status quo of this problem exist in the United States intact.
Netflix plans to crack down on users * * * enjoying account passwords. After the rapid growth during the epidemic, Netflix is now forced to admit that there is not much room for growth, and it needs to rely on measures to crack down on * * * to keep the number of subscriptions growing.
Netflix said that compared with the previous quarter, its total number of users decreased by 200,000. Due to the suspension of service in Russia, Netflix lost 700,000 users. However, during this period, the number of subscribers in other places increased by 500,000, so Netflix now has a net loss of 200,000 subscribers.
Despite the accident, it is still a huge drop compared with the growth of 2.5 million vehicles originally predicted by Netflix this quarter. Netflix currently predicts that 2 million users will be lost in the next quarter, compared with an increase of 654.38 million+500,000 in the same period last year.
In a letter to shareholders attached to the first quarter earnings report, Netflix admitted that its revenue growth had slowed down significantly. Netflix said that the competition among Hulu, YouTube, Amazon Prime Video, Disney+ and other streaming media services is still fierce. The company believes that the biggest problem is that account sharing among multiple families is very common.
The letter wrote: "However, our relatively high household penetration rate-when including a large number of households with accounts-combined with competition is producing resistance to income growth. Until recently, the spread of streaming media by coronavirus pneumonia made the situation blurred. Although we strive to accelerate income growth again-by improving services and monetizing multi-family enjoyment more effectively-we will keep the operating profit margin at around 20%. "
In short, Netflix decided to do something about its account, because its users can't grow exponentially as before. Netflix estimates that in addition to 222 million users, another 654.38 billion users use the * * * accounts of paying families.
In today's earnings conference call, Spence Newman, chief financial officer of Netflix, assured investors that although the number of subscribers is expected to decrease by 2 million in the next quarter, they expect the number of subscribers to increase again in the second half of this year.
On the conference call, reed hastings, co-CEO of Netflix, admitted that Netflix had been aware of this behavior for some time, but it was not an urgent problem due to the significant increase in subscription and income. But now, with the decline of income and growth, Netflix thinks it is time to do so.
As for how the attack will be carried out, Netflix did not show all the details, but Greg Peters, the chief operating officer, suggested that Netflix go through "an iteration of about one year" before introducing changes on a global scale.
In addition, the meeting added that in Netflix's financial report, sharing accounts with people outside the family will not be regarded as a separate subscription, which means that in the future, the company will pay more attention to revenue growth and viewing participation, rather than the number of subscribers.
Netflix plans to crack down on users * * * enjoying account passwords. Netflix warned that it would crack down on account enjoyment on a global scale. I'm afraid it won't be so easy to borrow the passwords of family, friends or casual acquaintances in the future.
According to Netflix, it is estimated that more than 30 million households in the United States and Canada use * * * to access and watch videos. There may be more than 65438+ billion families in the world who use * * * to enjoy passwords.
In the quarterly shareholder letter, Netflix admitted that it was interested in enjoying outdoor accounts because it would make users addicted to services. But now the competition is more and more fierce, and Netflix hopes that families who enjoy passwords with * * * will pay to watch them.
As of the first quarter of March 3rd1,Netflix lost 200,000 paid members, which was the first loss of 10 for many years. Netflix even predicted pessimistically that it would lose 2 million users in the second quarter. Netflix currently has about 222 million members worldwide.
Why tolerate account * * *? Wilmot Reed Hastings Jr., CEO of Netflix, once said that because the company did well without taking strong action. Over the years, Netflix hopes to build a consumer-friendly brand image, which is helpful for customers to enjoy. But now the situation has changed, the growth has stagnated, and the company's attitude will change.
At the beginning of this year, Netflix began to test new methods to combat account sharing in Chile, Costa Rica and Peru. Netflix may expand its business in these countries and charge extra for accounts that use passwords outside of home. As for how to take action on a global scale, Netflix did not disclose it. It just implies that big changes may occur in 2023 at the earliest.