The future of Netflix: more expensive or less convenient

The streaming device has never been able to compete with competitors like Disney (dis) In terms of absolute content, but she founded her company around giving customers the best comprehensive experience possible.
Currently, Netflix (NFLX) He trades some of that experience so he can grow into the media business.

Michael Nathanson, Media Analyst at MoffettNathanson, “They’re going to make it harder for people to share with their families, and they’re going to make it harder for people to watch in multiple locations…If you choose, make the ads cut into your content.” , for CNN Business. “So the original consumer offering, which was incredibly valuable, is now turned on its head.”

These initiatives are undoubtedly beneficial to Netflix’s bottom line, but they are not necessarily what customers are demanding. This may become a problem as the company is simultaneously trying to attract new users, reduce disruptions and make money.

Ultimately, for Netflix to succeed in the world of streaming, it may have to become less like Netflix.

“We are…ads free”

“We are…ads free. That remains a deep part of our brand proposition.”

So said Netflix in its 2019 letter to shareholders.

The company added that it believes it has “more valuable business in the long run by staying out of competition for ad revenue” and will focus on “competing to please viewers.”

Oh boy, how have things changed.

Netflix announced last week that it will partner with Microsoft to build its new advertising tier and said on Tuesday that it expects to launch the show “in the early part of 2023”.

Within three years, advertising at Netflix had gone from “never” to one of the foundations for the company’s future growth. This must be confusing to subscribers who don’t You have To watch ads as their existing plans will remain ad-free, but now you will have to choose between a cheaper ad-supported plan and a premium plan.

Zack Sheikh, vice president of programming for research and media company Magid, headquartered at CNN Business, said.

And what impact can ads have on one of Neflix’s most important pillars: content.

Will ads have an impact on content standards and Netflix’s supposed ‘artist-friendly’ environment? Sheikh said. “Do advertisers expect Netflix to censor certain content that Netflix doesn’t have to worry about at the moment?”

What’s the password?

Password sharing is another area that Netflix is ​​trying to tighten up, but it can be tricky.

The company said on Tuesday that it is in the “early stages of working to monetize… [more than] 100 million families currently enjoy Netflix, but don’t pay for it directly.” Translation: You may have to pay more to share your account.

Netflix is ​​experimenting with possible solutions by rolling out two test features in Chile, Costa Rica and Peru called ‘Additional Member’ and ‘Profile Transfer’.
Netflix may pressure you to share password.  Here's what that means

It will not be easy to get users to keep their children, friends or colleagues in their accounts. “We know this will be a change for our members,” the company admitted.

Until recently, Netflix had no problem with subscribers sharing their passwords. In fact, the service said in its April letter to investors that the policy likely helped fuel its growth by “attracting more people to and enjoying Netflix.” But now the company needs these people to pay.

Will this alienate millions of consumers?

“What worries me is that the good intentions they have built over the years … dissipate over time when they do things that are supposed to be unfriendly with the consumer,” said Nathanson, the media analyst. “All the incredible value and goodwill they have built is at stake.”

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