![]() Of course, Netflix is still Netflix and continues to be massively popular with its 213.5 million users around the world. “That’s why they need to talk about the global growth story, positive cash flow, new content, new growth opportunities like gaming, and potentially new business models and markets.” “Subscriber growth in the US and Canada has been a difficult story to tell,” Hare said. If Netflix continues to bring in so-so subscriber growth numbers, Hare believes that the company will need to focus on other ways to make its investors happy. That’s why investors will be so focused on what Netflix says about the current quarter and beyond, as those higher prices start to kick in. “We’re estimating that Netflix will spend $17 billion globally and that’s off $12 billion in 2020, which happened to be a down year because of Covid,” he said. Mark Zgutowicz, a senior analyst with Rosenblatt Securities, said that Netflix spends a ton of money on content around the world, which hasn’t been supported by two of its biggest markets, US and Canada, where subscriber growth has “waned over the past several quarters.” Wall Street was happy with the news, sending Netflix’s stock up roughly 2% on Friday. In Canada, Netflix’s standard plan also went up $1.50 to $16.49 Canadian and the premium plan rose $2 to $20.99 Canadian. ![]() ![]() The premium plan increased $2 per month, to $19.99. The streaming media company said Friday that it’s raising the monthly price for a US subscription to its standard plan by $1.50, to $15.49, and its basic plan by $1 to $9.99. “Raising prices is just one lever they can continue to pull right now, though I’m not sure for how much longer,” Hare said. Netflix teaming up with PGA Tour and golf's majors for 'immersive' docuseries with glittering cast of players That may explain why the company doesn’t want to fixate on those price hikes too much.Alex Goodlett/CJ Cup Summit/ Ben Jared/PGA TOUR/Getty Images The hard truth for Netflix is that it can’t keep raising prices without exacerbating those other issues. People have a limited amount of money they’re willing to spend on streaming services, and each time the cost of Netflix increases, competing services and password sharing start to look like more compelling alternatives. In the end, this all comes back to price hikes. If you’re sharing a password with a friend or family member, I wouldn’t lose much sleep over it right now. Just as garden-variety price hikes might cause customers to flee, draconian account control measures could turn off paying subscribers as well. I suspect this is why Netflix is not moving all too swiftly on the password-sharing front despite its well-publicized experiments, with no plans to expand its crackdown in the United States for another year. A subscriber that shares their password with far-flung family members might be less likely to cancel even in the face of repeated price hikes. ![]() Password sharing could also a valuable weapon against churn, as Netflix customers are among the least likely to abandon their subscriptions on a seasonal basis. Some account sharers may not consider a subscription to be worth paying for at any price, and mechanisms to prevent it could also create new inconveniences for paying customers. It’s simply paying more attention now because subscriber growth has slowed, and those 100 million sharers seem like a juicy target for fresh revenue.īut this crackdown will have its challenges as well. The company says that the percentage of people sharing their accounts has not meaningfully changed over the years. Note that Netlfix is not dealing with a sudden spike in password sharing. It briefly tested a system last year that asked users to prove they’re not sharing passwords, and last month, it launched a test in Chile, Costa Rica, and Peru that lets password sharers pay for up to two extra accounts, each with their own profiles. In recent months, Netflix has started formulating a response. ![]() In its letter to shareholders, the company estimates that more than 100 million households worldwide are accessing someone else’s account, 30 million of which are in the United States and Canada. The newly competitive landscape also helps explain why Netflix is now looking to password sharers for a bailout. ![]()
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