May 20, 2022

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Netflix ad bundle penalties apply to account sharing amount

Netflix ad bundle penalties apply to account sharing amount

About the new subscription Netflix The ads have been speculated about for months. It is meant to be a remedy for less than expected results for the platform and for attracting new subscribers. Netflix has a problem with this, Because in the first quarter of this year. You mentioned reducing the user base by up to 200,000 This is the first case of its kind in a decade. However, in the second quarter, the platform expects to lose another 2 million users. In April, Netflix announced that it had 221 million subscribers.


In addition, competition is increasingly chewing on the incumbent entrepreneur – their streaming platforms have been successfully launched on the market by Disney, Apple, Amazon, NBCUniversal (Peacoock) and Paramount+ also taking the market by storm, and SkyShowtime is scheduled.


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Netflix with ads. No more tolerance for account sharing


As the “New York Times” wrote, the cheapest package with ads is expected to appear on Netflix in the last quarter of this year. At the moment, it is not known how much a subscription to this version will cost or in what form the ads will appear.


The paper cites a comment from Reed Hastings, CEO of Netflix, in April: “It makes a lot of sense to be able to get what they want for consumers who like low prices and tolerate advertising.” The argument for offering the package with ads is the increased availability of poor customers and the fact that competitors decide to take similar steps.

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Inside information on Netflix, which was found by “NYT” journalists, shows that the platform, in parallel with the new advertising package, will be Account sharing is discouraged. This has been a growing handicap for years, limiting the new Netflix user base, to whom the media has been writing for months. Netflix will strongly discourage subscribers from sharing accounts with others this year, for example by charging them additional fees.


The results of a recent survey conducted among subscribers also indicate a problem with account sharing on the site. Survey of a group of 1,000 Netflix subscribers in The United States showed that every service purchased in that country was used by at least two non-subscribers.




The study also showed That after some time, paying the subscription will change their passwords, hoping that the person using their account will not contact you asking a question about a new password. 30 percent were not discouraged and asked account holders to share their new credentials again. Many account owners found that their login credentials were shared without their knowledge, despite 48 percent. Live account sharing with the account holder.


And when experts were asked about the idea of ​​advertising on Netflix, they indicated that Many advertisers will be happy to promote themselves on the platform. However, the devil is in the details, because a very aggressive advertising policy can have the opposite effect and the flow of customers from the platform will be greater – they evaluated.

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How much is netflix


In Poland, the cheapest Netflix subscription costs PLN 29, not in HD quality. The standard package, which allows access for two people, costs PLN 43 per month. The premium package for 4 people, with high-resolution image quality, costs PLN 60 per month. It is more expensive to access competing services than the current cost – HBO MAX, Prime Video or Apple TV + is a monthly cost of 11-30 PLN.


Netflix results are weaker


In its latest business report, Netflix reported that in the first quarter of 2022 it recorded a decrease in subscribers by 0.2 million to 221.64 million. This is the first such case since 2011. The platform has admitted that its influence growth is slowing, including. The result of personal file sharing and competition.


Netflix’s revenue in the last quarter also turned out to be less than planned – it increased 9.8% year over year. to $7.868 billion versus the expected growth of 10.3%. Up to 7.903 billion, the platform’s operating margin was 25.1 percent, and net profit was $1.597 billion.


In the report, Netflix admitted that its revenue growth slowed significantly and was less than expected. – Our penetration of relatively high households, given the large number of households that share their accounts, combined with competition creates an obstacle to revenue growth – it was written. “So far, the surge in the influx of the coronavirus has obscured this scene,” she admitted.

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According to experts asked by Wirtualnemedia.pl, the main problem of the site is the content that is below the competition.. The website should stop shifting responsibility to the recipients, and the active fight against sharing accounts may turn into a “shot in the foot” – experts will evaluate this.