Aussies have spoken, and the results are not looking good for Netflix. A new report reveals why users are turning to streaming competitors.
200,000 users abandon Netflix after crackdown backfires::Aussies have spoken, and the results are not looking good for Netflix. A new report reveals why users are turning to streaming competitors.
Not to mention that they did start with the narrative that they start enforcing this on a certain date, but it took me 2 months over that to receive the warning/being locked out. I remember seeing people from Canada (one of the countries in the first wave) that still had not been forced off 4 months into the date they had set.
They appear to be taking it slow (not booting off everyone at the same time) to build this narrative that it's working fantastically so to not get a massive drop off in users (stock price drop) and waiting out for their competition to also move forward with this change. All of this while also adding more markets, dropping the prices in others and removing the cheaper plans.
It probably did work though. We had some relatives piggy-backing off of our top tier 20 year old account when we got shut down last August in what must have been beta testing for the program. We cancelled our account. I'm not sure how many of the relatives ended up getting their own accounts but the poorest and least able to afford an additional monthly charge went and signed right up, so they were at at least a net zero change in subs there (though they signed up for the cheapest option).
I was looking at sky sports in the UK and the majority of their packages had “free Netflix” offers included. I wonder if enough of those signs ups would have influenced the numbers?
I don't know about launching in new countries, but a lot of the new subscribers were added in countries where Netflix is cheaper so while they did add a lot of subscribers the revenue increase wasn't large.
And yet their stock dropped massively after revealing the 5 million gain because investors realize that it was a one time boost that won't help them in the long run.
I live in multiple places with each stay lasting about three months. So far Netflix has not given me shit about it. It just asks me if I want to movey home address. As long as it continues to let me move around, we're cool. The moment it decides that I have to open a separate account per home, I am out. I watch Paramount+ the most anyway.
EDIT: Honestly, the real conversation should be how mid Netflix original content is most of the time. Their best shit is stuff they import.
I have a similar lifestyle thanks to work and Netflix did exactly what will make you cancel. Whatever you do, don't set it up on your home smart TV because that's the thing that screwed up my account. Suddenly, I had to create new accounts for every random hotel I was living in for months at a time or go home every 30 days to reconnect to my home WiFi. I cancelled as soon as the account I paid for, that I didn't share outside my household suddenly stopped working. As an aside, I wonder how this effects other traveling people: truckers, military families, traveling nurses, or air crew.
In Q2, as in the previous quarter, Netflix’s advertising tier generated higher average revenue per user (ARPU) overall than the Standard ad-free plan ($15.49/month), implying more than $8.50/month in ad revenue per subscriber, Neumann said.
Maybe. It’s just the start right? How many will keep those subscriptions? What about when they raise costs again? I’ve had a Netflix account for a really really long time. I was even grandfathered into a plan at one point. Eventually was forced into coughing up more and more money, getting less and less for it. It wasn’t just the password sharing. It was the way they keep running their business, and how it’s going across the whole streaming system. I cancelled my service a few days ago after over a decade of service.
On top of this all: 🤬 ads.
I’m so sick of being bombarded literally everywhere. From Products I buy and bring home, to being outside of the house. I’m sick of being a cash cow and getting ’trickle down’ wages and dealing with inflation. So yeah. 🖕 Netflix.
Yep, cancelled the subscription we shared among my dad, brother and I. Most outrageous fact was that I actually have two residential addresses (private and an apartment provided by my company near the office), and even as account owner I was being inconvenienced with the "are you travelling" bullshit.
I don't care about Netflix password sharing policies. But I do very care about their content policy. I don't even start a new show until I know they finished it without cancelling it half way through.
I also do care about the fragmentation in the streaming industry. I'm not willing to buy me in in 5 streaming services just to view 5 different shows.
I hate them both! I'm still not over the fact that they cancelled Inside Job. It's just the latest in a long line of shows we'll be forever left unsatisfied with no ending and I hate it.
I canceled as soon as they said they were going to be cracking down, months ago. I pay for 4 screens, and on principle, I want to be allowed to use them without being nagged or scolded or banned. So if they don't want my business on those terms, there are plenty of other streaming services with just as much content I like.
We split an account between 4 households, paying a quarter each. When the crackdown happened, 2 including my house cancelled and the 3rd paid for the extra user. So they halved their users from our account, but increased revenue anyway. Seems like a win for them.
It's only a short-time gain though. With a shared account between 4 households, chances that one of them is actively using the service is much higher than with only 2 users. If a service is used less and less, chances are increasing it's going to get canceled (especially now that prices are soaring while wages are not increasing accordingly).
Do you mean they increased their revenue overall? Despite losing 2 households of viewers because of the increase in individuals paying for it outside of your 4 households?
Because you said 2 households dropped out and the other 2 paid more each. But that would still total to the same amount of money to netflix but a lower viewership, which affects their engagement stats and might get more netflix originals cancelled or other shows dropped.
Who are these 50% of Aussies who think we need more locally produced content on streaming services? Our content sucks, who's actually watching these Aussie dramas / series
I really liked showing bluey to my kid, as in I enjoyed watching it, the kid doesn't understand shit yet. But my SO started pointing out that the "morals" were a bit off sometimes, like the dad is always giving in to what the kids want, they get rewarded for being a bit nasty, etc etc. Have you ever felt that way?
But seriously, I can imagine 50% of people saying in the abstract they would like more locally produced content, though I'm not sure that it would actually affect purchasing behaviour.
Probably the same kind of people who make similar arguments about CanCon.
There's always been this tension between "We need a thriving TV and film industry in this country" and "Most of what we produce is garbage for the purpose of using government grants" here. Can't help but wonder if it's the same on your end of the planet (#justcommonwealththings).
At least there are always a couple diamonds in the sludge, though (here, Schitt's Creek, TPB, and I'm sure some others even though the other ones I think of are looong over)
Aye, I left when they started up their bs in Canada. I will very grudgingly turn it on once Three Body Problem is out and then turn it right back off. Or even, if I can buy TBP from another streamer or DVD , I'll wait and do that.
This greedy crap from Netflix is personal to me. So sick of greed.
It's not even greed. It's horrible mismanagement. They dug themselves a whole bunch of financial holes based on a false belief that they could continue seeing the same subscription growth without stopping to consider the possibility that there was a point at which they would inevitably plateau. And now they are scrambling to find ways to make up the shortfalls in their goals now that the plateau is in sight. Some genius executive thought cracking down on shared accounts would fix that. 😂
I would like to say piracy against the big guy also hurts the little guy making the content you like.
I am all for pirating that scientific journal and that college book but there is a reason writers, artists, and the people making a shit amount of money for the work they put into the things we love.
I won't support something that hurts a regular person giving me the things I like to watch, but I get your sentiment.
Well, if I couldn't afford a subscription service before, now I absolutely can't. Problem is I'm too much of a goody two-shoes and as a result I don't pirate either - I genuinely haven't seen a single TV series in almost a decade as a result, and at this point I'm scared of people expecting me to understand cultural references I can't afford to legally learn
Eh… I’m not going to try to convince you that piracy is the answer, I’ll just mention that you’re already giving them as much as you’re willing to watch their content, why not just watch it anyway?
Funnily enough, we pay for most streaming services in our household, but I use Stremio and get my content off the high seas because it’s all contained in a single app, and doesn’t feed their analytics.
Not going to lie- while I do watch most of what interests me in a timely manner, I've found that any cultural references that I do miss are easily explained via memes.
Hahahahahahahaha. I was like that guy in my youth, not knowing what people were talking about was alienating. I was reading a lot of books instead and, of course, nobody understood the references too.
200,000 users is like a piss in the ocean for Netflix, especially when every other major streaming platform is also hiking prices, introducing ads and cracking down on account sharing.
you ever talk to somebody who bought like 100 dollars of stock in a company? Not saying I know exactly what kind of piss this is, but I suspect this is the most common type of piss.
I had a friend who had been given microsoft stock in the 90s and he could not say anything negative about it.
The significance of this, in my opinion, isn't that Netflix lost 200,000 users in Australia, but that for the first time Netflix has seen a decline of users in Australia. No more line goes up, oh no!
Either way, this is probably less from password crackdowns, more people jumping to alternative streaming platforms.
I certainly don't know anyone here in Australia with a Netflix account any more. But I know several people with Disney or other alternative streaming platforms. So I'll agree with that one: They chose a platform that suited them better, and don't miss Netflix.
Also they leave out that almost 6 million additional signups were added by this change. I'm ready to go back to the high seas myself even though I'm the one who pays for the account haha
Yeah. Blocking password sharing is technically reducing users, since you are blocking sub profiles on subscriber password sharing accounts. Would be curious to see more detailed reporting on subscriber vs user usage.
I guess the lesson is that Netflix was always doomed the moment the companies that actually produce and/or own all the content realized how lucrative streaming could be. They were only as successful as they were because they had no competition.
Making it accessible in more countries must've had absolutely nothing to do with it. Zilch, nada, nothing. It was all about cracking down on password sharing. /s
On top of what ShustOne said, I would argue that they have know this for over 10 years and was the reason they created Netflix originals starting with House of Cards.
The business articles about how companies like Disney and others that "that actually produce and/or own all the content" are struggling to compete kinda suggests otherwise though.
Article seems to confuse cause and effect. Maybe some subscribers left but they more likely because the service is too expensive or didn't like the content. It doesn't necessarily follow they all left because some freeloaders lost their access to another person's account.
When I cancelled my account I was sure to put that I was not going to continue to support my parents in law since I didn't care for the service myself.
So Netflix lost a top tier subscriber from me because of it
I mean sure, turn to streaming competitors, but they are not going to be any better in the long term.
The entire subscription model sucks. It's really bad value for the consumer and makes us pay huge amount of money every month for nothing once we have watched what we want to watch.
My new streaming service is powered by open source software and has a black flag on the rear end of the ship. I'll be fine.
In the end I'm one of those pirates with an enormous inventory of movies purchased on YouTube and other services, I just don't want to support services that pride themselves with cancelling after season one.
Best suggestion I've heard is rotating subscriptions. Netflix for 3-4 months and watch everything you're interested in then cancel, Apple TV next for 3-4 months then cancel, next maybe Hulu or Max, finally loop back around to Netflix.
Or maybe some might find it works better to rotate 2 services, or keep one like Disney always for the kids but rotate another. Regardless it's not too much of a hassle and avoids paying for 4, 5 or 6 services at a time.
One of my kids asks maybe once in six months to watch something on Disney+ so I subscribe and instantly cancel (don't get me started about auto renew). I swear in that six months there are maybe a handful of new shows and movies that are worth watching and the rest is the same old junk as before. It probably doesn't help that Disney is making some really terrible content lately.
Netflix isn't quite so bad but I can see why people would want to take a break from it. While I think they have a slightly better hit ratio than Disney they've also put out some expensive stinkers too.
Subscription models are so monumentally better than cable that it's unreal. It is absolutely not a "huge" amount of money compared to the alternative of cable+"premium channels" which was the only way to even begin to approach the level of content currently available via streaming.
Maybe it's better than cable but it's still not worth the money in my opinion. All my subs are just idling (the two I have left). There is nothing good on there and it sucks paying for something I don't use just in case there will be a show worth watching in the future.
This is for Australia. Unfortunately, last I read, you're right about it helping their numbers globally, to the extent that Disney is looking into cracking down on sharing too. I did not get my own subscription. Most of their shows are dull to me, and the ones that I like often get canceled.
It's become apparent that Netflix has been rolling out these changes gradually over the past couple of years to avoid a high volume outcry. They are aiming for a trickle here and trickle there.
Searches for "this account cannot be used in this location" + "Netflix" shows the same story. People run into blocks that didn't exist when they traveled or used Netflix away from home.
Many subscribers haven't experienced this yet and so try to explain it away as an anomaly making those who have experienced it question themselves. And there are the shills online, on Reddit for example, trying to play it off as subscribers being angry about nothing and/or trying to take advantage of lower Netflix fees in other regions. That doesn't explain North American users paying over $16 being blocked from using their accounts while abroad. Netflix customer service response is consistent in its inanity and gaslighting.
This is not "working." Netflix revenue is decreasing year on year, quarter on quarter. They are replacing subscribers who pay $16 - $20 in North America etc with subscribers paying as low as or lower than $10 in other countries. It defeats their greedy purpose to replace 1 person paying $20 with 2 paying $10. They are not "forcing" anyone to subscribe at the $16 - $20 level because they were locked out based on location. Rather they are leaving a bad taste in the mouth of subscribers and losing them in the process.
Netflix's audacious ludicrous stance is that they are entitled to money from people who share accounts with friends and family. They imagine this money will materialize for them once they put these measures in place. It's obvious that is not happening.
Netflix has decided a death spiral is preferable to providing service that subscribers want. How long before revenue growth is 0% and then negative. That's the trend. That's where they're headed. I can't wait🫸🫷.
The "this account cannot be used in this location" error hit me this week after using Netflix for more than 10 years. Customer service was very interested in telling me to get prepaid cards and phones to re-subscribe to my account versus being able to use my North American payment method and billing info while traveling.
Fuck Netflix. How dare they? They are not food and water or a roof overhead. They are not entitled to details of my location or traveling habits. They are simply entertainment. They were the only streaming service I kept up consistently month to month almost like cable. That is the reality that Netflix will face. People will subscribe for a month to binge a show and then cancel once that month is done. They're destroying a selling point that made them better than Hulu or any other streamer not available internationally.
Netflix sent their last DVD this week. Soon enough Netflix may return to DVDs when they've run their business into the ground and the only interest people have will be to purchase Stranger Things or The Witcher to watch on their DVD players and game consoles away from subscription.
Others have already pointed out that Netflix cracking down on password sharing hasn't backfired and has actually been a huge win for them globally, but I just wanted to add that this community is absolutely terrible for only sharing articles that confirms it's anti-tech industry bias and leaving out any information that doesn't.