Netflix claims they have delayed its plans to kill password sharing in the United States to better study the results of its beta program in other countries. It seems far more likely, as this is matched with further cost-cutting that the streaming giant is afraid of the backlash.
Netflix turned a blind eye to password sharing for ages, and I'm surprised there are more than 15 or 20 accounts that get paid for. I am more certain the results they are getting from their global test markets are not "increased revenue" and "more subscribers." People appear very willing to walk away from subscription services after watching the one hit program they can muster per season if they ever do at all, and to only come back for hits or events.
Killing password sharing sounds like a bad idea.
WSJ:
The company is looking to cut costs, in part, because its plans to crack down on password sharing broadly in the U.S. and elsewhere were pushed back from the first quarter to the second quarter, the people said. That change is expected to generate new revenue.
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The company said it delayed its password-sharing crackdown to give it time to learn which approach was best for members and its business. As a result, the revenue from the change is now expected to come in toward the second half of the year, according to the people familiar with the matter. The reduction in spending represents a small percentage of Netflix's overall expenses. Last year, the company's operating expenses were about $26 billion.
Hollywood has allowed their content creation industry to simply become a bigger and more expensive version of what YouTube "creators" endure. Quickly make more content cheaper, shorter, and faster to hold ever-declining attention spans in a race to TikTok. Streaming networks produce shows that cost more than their subscriber base can hope to bring, and executives pay themselves for the brilliant strategy. Media conglomerates own two, three, or four competing streaming channels that all drag behind them like boat anchors. Only winners are the executives.
