Netflix premium account – Netflix’s 200,000,000 users reached last February and its shares have increased nearly 50% in a single year. Disney +, the newest player in the VOD wars, has managed to attract 100,000,000 subscribers in just 2 years since its service was activated.
Outside the VOD service rules, sharing Netflix Premium Account
We have the option to share our account with several people depending on the plan of each VOD service. However, this is subject to certain restrictions and control. Netflix reviews on its website that only people who live together can access your account, and buy Netflix account.
A shared account with family or friends is legal but it is illegal if it isn‘t in the same home, according to Netflix.
The same goes for the rest. However, in practice, it is most common to share an account with several people, paying for it together – regardless of whether they live in the exact same house or if they are related.
At a conference last year on financial results, Netflix’s CPO Gregory K. Peters stated that they were looking at how to end the practice between paying premium and standard accounts and using them in different households.
Because streaming services lose money each time an account is shared that violates their terms and conditions. Netflix actually tested verification codes with some of its subscribers in March 2021.
In 2022, Netflix Premium Account will ban for sharing
According to The Washington Post, only a few people saw a strange message on TV. This medium, and screenshots from the Internet show that it read something like this: “If you don’t live in the same household as the owner of the account, you will need to create your own account to see it.”
Netflix has a new feature in testing that warns password-sharing users and those who don’t live with the password owner that they must pay their bill.
They are asking users to confirm that they are the holders of the password or members with direct access to it.
This code is sent by text message or email. You can still verify the code later, or ignore it.
However, those who have not yet received the password will still be able to sign up for the streaming service. The streaming giant will offer a free trial. This is something they have removed some time ago, which could encourage them to subscribe.
Invest in your own catalog development
The loss of revenue from streaming services due to sharing passwords can be estimated at several billion dollars per year. This issue must be addressed, as the cost of creating new programming is on the rise.
VOD platforms have seen a rise in their use and are now requiring more production of exclusive content. This, like video games, is what determines the success or failure of a system.
450 millions dollars for the first season of the Amazon series “The Lord of the Rings“, four times the price of “Game of Thrones” season.
This price tag is rare, despite how high it is. However, large companies are spending huge amounts to create their own movies and show their uniqueness from the rest.
Disney + stated that it will spend $16 billion per year on new content for Disney + and Hulu, as well as ESPN + from the fiscal year 2024. Bankr estimates that Netflix would have spent $19 Billion on original content by 2021.
Price increases
This means that the company must make more profit in order to survive. Several services have done what users most hate: Increase the cost of your subscriptions.
Netflix increased the price of its most popular plan by one dollar to $ 14 per month in October 2020. Disney + increased its price from $ 1 per month to $ 8, when it launched the entire STAR catalog in March 2021.
Tuna Amobi, an analyst with investment firm CFRA, says that programming spending is increasing by doubling or even quadrupling in some cases.
“Most services will experience losses in the coming years before they reach profitability. They should use all fertilizers that they can.
Illegal sharing
The Pew Center for the Internet and Technology estimates that around 2/3 of online adults have shared their VOD account passwords to family members or friends. The figure for the Millennial generation is even higher. 56% have shared passwords with friends or family.
Another study found that more than 25% of video streaming services can be used by multiple households. This includes the possibility that a friend or family member may share the bill. Splitting the cost is less common than for multiple households.
According to Leichtman Research Group, 16% of households have at least one service paid for by another person. This number increases to 26% for young people aged between 18-34 years.
They are losing billions of dollars each month
According to the latest data from Park Associates, sharing or stealing passwords for streaming service generated an estimated $ 2.5 Billion in revenue in 2019,. is projected to rise to $ 3.5 Billion by 2024.
This may not be much of the $ 119.69 trillion that eMarketer forecasted people would spend on video subscriptions in the United States over the next 2021. However, subscriber growth is slowing while costs are increasing.
It’s a delicate balance. Since long, video companies have offered legitimate options for multiple users to use their service. They offer profiles and different levels of screen sharing, .
More people could pay full price for their subscription if there are stricter rules regarding password sharing. However, if the rules are too stringent it could cause users to be scared away and leave.
Tuna Amobi, CFRA’s director of communications, stated that Netflix and the company will “take a very cautious approach” to this. A move like this can be disastrous if it is not handled correctly, buy Netflix premium.
All this shows that there is no quick fix. What are the other steps VODs will take to win the public’s support?
