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Netflix has become known as one of the key players in the streaming market, a precursor to this powerful industry.
The arrival of Disney Plus and other players with formats such as those that include advertising have undermined Netflix’s luck in the business.
Netflix has been a highly relevant business in the streaming industry and its capacity has been fundamental in the content market.
The alarms have sounded within Netflix and within the offices the worst warning has been issued since the platform became one of the forerunners of streaming. The loss of subscribers has already forced the brand to rethink its business and access a emergency plan.
All this occurs while losing confidence in the “promise” that the app gave as a business and in the growth capacity that has been undermined, so its emergency action becomes key.
Undoubtedly we are facing a turn in the industry that is about to take place and the blows on the table will be forceful to rethink the way in which streaming has been done currently.
the netflix plan
Purging users who share their passwords, allowing advertising on its platform and new economic rates are some of the options that appear in the emergency planwhose “break in case of loss of users” glass has been broken.
All this happens after it became known that Netflix it lost 200 thousand subscribers so far in 2022, so the strong disaster already has consequences that will invariably begin to take action against users who misuse their profiles and share passwords.
The platform made a first advance in which it warned that in more than 100 million homes in the world the password of users registered to the platform is shared.
Within the United States and Canada, which are the most significant markets for the platform, the business is impacted by 30 million households (of the estimated 100).
The problem of misuse in passwords has been a problem identified by Netflix, however, until now it had not made the decisive decision to face itbecause it had not represented a problem, since it maintained a growth in registered users.
The reality is already different for the brand and under this approach, the decision has to be forceful to stand up to Disney, Warner, Apple, NBC and Paramount, which have affected the business of the most famous company in Gatos, California.
“The practice of sharing accounts, in the percentage of our paid memberships, has not changed much over the years, but its impact makes it difficult to increase membership in many markets, a problem that overshadowed our growth during the contingency” , explained the platform in the middle of this tidal wave that has risen.
Along with these decisions, the CEO of Netflix, Reed Hatingssaid he was willing to experiment with new models to generate income on the platform, so he accepted that after years of refusing to experiment with these formats, he was now open to allowing subscription models based on advertising or affordable prices, to give his customers options. subscribers.
“Those who have followed Netflix know that I have been against the complexity of ad-supported subscription and I am a big fan of the simplicity of subscription.
As much as I am a fan of this model, I am a bigger fan of the free choice that the consumer is entitled to and allowing them to choose who would like to have a lower price and tolerate advertising to get what they want, this has a lot meaning,” he said.