from the streaming-restrictions-are-coming-in-torrents dept.
Arthur T Knackerbracket has processed the following story:
So we’ve noted more than once that as the streaming sector is saturated and new user growth slows, streaming giants will follow on a fairly predictable path that got their predecessors (cable TV companies) in trouble. Namely, shifting away from innovation and disruption and consumer welfare, and toward nickel-and-diming customers in a bid to give Wall Street improved quarterly returns at any cost.
That means a lot of pointless and harmful “growth for growth sake” mergers (see: Discovery Time Warner), endless price hikes, weird attempts to nickel-and-dime users (see: Amazon suddenly charging extra to avoid new ads), a general skimping on staff pay and customer service, and a steady enshittification of overall product quality you’ve probably already noticed.
Part of that process involves eliminating popular things that previously helped bring in new customers, like password sharing. We’ve noted how when Netflix wanted to sign up more customers, it praised password sharing, acknowledging that it didn’t really hurt the company’s bottom line, and basically acted as free advertising. Besides, Netflix already charges users extra for additional simultaneous streams.
Now that global growth is slowing, Netflix has to effectively cannibalize its own product quality and brand to appease Wall Street. It’s not good enough to just have a high quality product that makes money and people like; the need for improved quarterly returns inevitably turns disruptors into turf protectors. It’s what kicked Comcast in the teeth, and streaming execs seem poised to ignore the lessons.
[...] But if there’s any potential to squeeze out a tiny bit of additional profits from existing customers, these executives will do it. Wall Street demands it. And when annoyed users increasingly head to free alternatives or piracy after being inundated with price hikes and sagging product quality, execs will inevitably blame everything and everyone but themselves for the failure. It’s how this all works.
(Score: 3, Interesting) by DadaDoofy on Saturday February 10 2024, @01:41PM (8 children)
"things that previously helped bring in new customers, like password sharing"
No. Password "sharing" does not bring in new customers. It brings in freeloading bums who think fees are for thee, not for me.
(Score: 2) by looorg on Saturday February 10 2024, @03:06PM
While it doesn't bring in new customers it does create something, something somewhat abstract that they at least used to care about -- viewing numbers etc that they can then probably translate into money somehow. Or see how popular our shows are etc. Give us money!
Seems a lot of companies was fine with the password sharing up to a point as long as they could claim to have millions of extra views and eyeballs etc. Then it become a problem. Sort of like how they didn't mind to much in the beginning with all the online piracy. But then they got it into their little brains that a download is like a lost customer and viewer, clearly it isn't but try tell it to them.
(Score: 3, Insightful) by pTamok on Saturday February 10 2024, @04:00PM
Allowing password sharing is free advertising. It works to persuade people who would not otherwise have paid to discover the product is worth paying for. It also grows market share, as people have limited time to use the product - there are only so many waking hours per day.
Some people can not, or will not pay. They are not your market.
The market is those who currently are not subscribers, but could be.
The obvious approach is time-limited password sharing. Allow passwords to be shared, but every so often, stop it from working, preferably randomly (or, if you are evil, just before the season finale of popular series). People who are 'hooked' will pay up. Some will be angered that their 'free product' has been taken away from them. Others will shrug, and find something else to do.
Getting rid of password sharing completely will reduce market share.
There ought to be some intelligent people working on the best strategies for maintaining revenue (and possibly growing it sustainably), but it sure doesn't look like it from where I am.
Meanwhile, copyright infringement looks to be being promoted as the easier option. Again.
(Score: 5, Informative) by Thexalon on Saturday February 10 2024, @04:31PM (2 children)
Speaking as a freeloading bum, I don't do password sharing on streaming services much at all. Why? Because the pirates invariably offer a much wider selection of stuff than any streaming service. You want to watch an obscure show that ended decades ago? You can get it more easily from a pirate than from the distributor. You want to watch things that weren't even distributed to your country? Yup, check with the pirates.
The reason is, very simply, that it's cost-effective for pirates to collect and distribute stuff that isn't worth the original creator's time to bother with.
"Think of how stupid the average person is. Then realize half of 'em are stupider than that." - George Carlin
(Score: 3, Insightful) by Gaaark on Saturday February 10 2024, @05:14PM
Plex media server and external hdd.
No commercials (except, i love some of the old black & white/early colour commercials on some of the old shows (and the old radio shows advertising cigarettes!)) and i can watch what i want, when i want.
Before i started doing this, i tried to watch a show on streaming (Family Guy i think) but only season 2 onwards was available... well, i wanted to start at season 1, folks!
Yup... doing it THEIR way just doesn't seem to work for me.
Plus, who is streaming "Steptoe and Son" or "The Fall and Rise of Reginald Perrin"?
CJ? No..."He didn't get where he is today by selling ice cream tasting of bookends, pumice stone and West Germany."
--- Please remind me if I haven't been civil to you: I'm channeling MDC. I have always been here. ---Gaaark 2.0 --
(Score: 2) by corey on Saturday February 10 2024, @09:31PM
Anyone got any good non logging VPN recommendations?
(Score: 3, Insightful) by Fnord666 on Saturday February 10 2024, @04:52PM
It must have been some sort of value added proposition at one point, since Netflix actively encouraged password sharing during its startup phase. Apparently they have decided that is no longer the case and they need to switch gears. It did make more sense early on when not that many people knew about streaming services in general or Netflix in particular. Now everyone is familiar and comfortable with the technology and Netflix is a household name in that space.
From a consumer point of view, however:
(Score: 3, Insightful) by mcgrew on Saturday February 10 2024, @09:33PM (1 child)
Bullshit.
I have Disney+. They emailed me about it. When my daughter in Cincinnati can no longer watch it, the geniuses at Disney will lose a customer. I'll miss Star Wars, but Fuck Disney.
This is nothing but rampant greed. Sure, if there are thirty people in one city using the same password, there's freeloading, but organizations with brains allow a set number of devices per subscription. My daughter was paying for Netflix. Did Netflix starting this stupidity gain them a single penny? I suspect it's costing them, I don't willingly buy from people who piss me off, especially something I can easily do without.
The number one problem in the world that causes almost all misery is the greed of the filthy rich.
It is a disgrace that the richest nation in the world has hunger and homelessness.
(Score: 4, Interesting) by tekk on Sunday February 11 2024, @05:34AM
Rather importantly: these services had a way to handle these cases already. Your Netflix account came with a limited number of simultaneous streams. I think 2 for the base, up to 5 with the highest plan. They're literally removing features you already paid for.
(Score: 4, Interesting) by PiMuNu on Saturday February 10 2024, @03:06PM
> Now that global growth is slowing, Netflix has to effectively cannibalize its own product quality and brand to appease Wall Street
It wasn't slowing growth. Income contracted in 2022. Post-pandemic? Or something else...
https://www.statista.com/statistics/272561/netflix-net-income/ [statista.com]