This drop in the number of users, the company attributes it in part to the sharing of passwords, which divert people from its subscriptions. And while Netflix has tolerated these password sharing for years, this time it decided to act.
And apparently Netflix isn’t the only one concerned about password sharing. Indeed, as noted in an article published by our colleagues from Protocol, Disney + is also starting to take an interest in it.
According to the media, Disney would have asked Spanish subscribers to answer a survey on sharing passwords. In the questionnaire, the company would ask subscribers why they share their passwords.
The answers offered by Disney in this survey could be indicative of the company’s concerns. For example, subscribers may respond that they share their passwords with other people because they don’t want to pay. These subscribers can also indicate that the people with whom they share their accounts do not have the means to pay, or that they practice a system of reciprocal sharing (for example, sharing their Disney+ account with a Netflix subscriber who will also share their account).
Disney also seems to want to remind subscribers that account sharing involves sharing personal data. Indeed, subscribers can also respond to the survey by: “I don’t care if they have access to my information. »
So, is Disney also preparing to crack down on password sharing? For the moment, Disney+ is showing good growth and unlike Netflix, the service is not in bad shape. Also, it is possible that the company is not in a hurry to make a decision on this. But in any case, the poll referred to by Protocol suggests that Disney is aware of the fact that it is losing potential subscribers because of account splits.
On Netflix, account sharing will become paid
“Our relatively high household penetration – if you include the large number of households sharing accounts – combined with competition, creates headwinds for revenue growth”Netflix said during the presentation of its quarterly results.
And whereas before, Netflix believed that it had to be done with it, today the company intends to act. “When we were growing rapidly, it wasn’t a high priority to work on [le partage de compte]. And now we are working very hard on it”explained Reed Hastings, the CEO of the company, to the shareholders.
Nevertheless, Netflix should not adopt a drastic solution, which would consist in blocking shares. The company could instead make these shares chargeable, asking the users concerned to pay a supplement on their subscriptions.
Moreover, a test of this system is already underway in Chile, Peru and Costa Rica. In this test, users pay an extra $2-3 to add profiles that are not in the same household. It is this system that Netflix intends to extend to other countries.
The inevitable advertising to ensure the growth of Netflix and Disney+
The creation of offers partially financed by online advertising is also a possibility, to ensure the growth of streaming services. In March, Disney+ announced its plan to offer a more affordable offer, but which will include online advertisements.
“Expanding access to Disney+ to a wider audience at a lower price is a win for everyone – consumers, advertisers and our storytellers”said Kareem Daniel, president of Disney Media and Entertainment Distribution. “More consumers will be able to access our incredible content. Advertisers will be able to reach a wider audience and our storytellers will be able to share their amazing work with more fans and families. »
In essence, for Disney, everyone will be a winner. And today, Netflix could also adopt this economic model, to which it was fiercely opposed.
“Those who have followed Netflix know that I have been against the complexity of advertising and a big fan of the simplicity of subscription”Hastings said of it. “But as much as I’m a fan of that, I’m a bigger fan of consumer choice, and allowing consumers who want a lower price and who tolerate advertising to get what they want makes a lot of sense. »