Just a couple of weeks ago Netflix made its new policy to avoid shared passwords official, even knowing the potential consequences. One of these would be the massive loss of users, who threaten to move to other platforms with more affordable prices and fewer restrictions, and even free. To prevent this from happening, the giant streaming lowered its prices in several Latin American countries.
On January 31, the company changed the rules for sharing passwords with people who do not live in your house. In summary, users would have to connect at least once every 31 days to the WiFi of the ‘main home’ that contracted the service.
In less than 24 hours, they backtracked and changed it (or supplemented, it’s not clear) with a process of periodic code ‘verifications’. The new regulations were confusing, with several ambiguities, ‘gaps’ and unresolved doubts, in addition to igniting the annoyance of subscribers.
Netflix’s intention is to increase its income, since until 2022 almost 60% of the accounts were shared. Since they announced the ban, they have indicated that they planned to lose users, but now they want to avoid a massive leak because, apparently, the strategy is proving counterproductive.
Many users have decided to cancel their accounts for one simple reason: this platform is more expensive compared to its competitors.
Netflix has the highest prices in the streaming market
Since mid-2020, in the midst of the pandemic, the platform began to raise its prices for all its plans practically globally. To compensate for the increase in their rates, they launched a cheaper plan with ads, which has not had the expected success.
Added to this is the arrival of strong competitors in the sector: Amazon Prime Video, Disney+, AppleTV+ and HBO Max, among others, that offer cheaper plans, an extensive catalog of content and less limiting to share accounts.
For example, it is common for two or more people to pay together for the most complete Netflix plan (4 devices at the same time), to share it in different homes and devices. In this scenario, the price seems fair, but if each person must hire it individually, it no longer sounds so attractive..
LNetflix monthly plans in Mexico cost:
- Basic with ads – 99 pesos (1 device)
- Basic without ads – 139 pesos (1 device)
- Standard – 219 pesos (2 devices)
- Premium – 299 pesos (4 devices)
In contrast, its rivals have more affordable monthly payments:
- Star+ – 199 pesos
- Disney+ – 159 pesos
- HBO Max – 149 pesos
- Amazon Prime Video – 99 pesos
- Apple TV – 99 pesos
- Paramount+ – 79 pesos
Most of these platforms can be even cheaper if purchased annually, as a package, or through third parties such as izzy either Free market.
In accordance with The SpanishNetflix would also be feeling pressure from the arrival of a new free streaming service called wbtv. It would be a platform developed by Warner Bros. Discovery that would complement HBO Maxoffering the not so popular titles of the payment service.
For this reason, the company founded by Reed Hastings I would be looking at launching a new free plan, perhaps with a very limited catalog and ads.
“This possibility is more real because there are already free streaming services in the United States. In fact, we could say that it is the latest fashion among companies, and almost all of them have some kind of free service. These services receive the “crumbs” of paid services, and it is usually not possible to watch the most popular series and movies; but for many users, that doesn’t really matter if they can watch it for free”, they point out from the Spanish outlet.
And that’s why I lower the price
In August 2022, Netflix began testing restrictions and charging for ‘extra’ users in South American countries such as Argentina, El Salvador, Guatemala, Honduras, Dominican Republic, Chile, Peru and Costa Rica. But it seems that the plan has not had good results, because the company took drastic measures.
To counteract the effects of all of the above, for the first time Netflix decided to reduce the monthly cost of its plans in several Latin American countries..
Discreetly, without announcements or press releases, the company informed subscribers that as of February 13 the prices of their plans would drop in some Latin American countries, according to media reports such as The Binary Herald.
users of Guatemala, Panama, El Salvador, Paraguay, Jamaica, Dominican Republic, Ecuador, Nicaragua, Venezuela and Bolivia received emails advising about the rate cut. All of these already have discounts of 3 and up to 4 dollars per plan, which matches the approximate amount Netflix charges for adding an extra member who doesn’t live with the account holder.
For example in Guatemala the basic plan went from 7.99 dollars (158 pesos) to 4.99 dollars (99 pesos), says the local newspaper i am 502. In Panamathe same plan went from 8.99 dollars (178 pesos) to 4.99 dollars (99 pesos), half the original price, reports The Panamanian Press.
So far it is not known if Netflix will lower its prices in other countries or regions, such as Mexico, Colombia, Argentina or Brazil, where it has a strong presence.
Editorial Team The editorial team of EMPRENDEDOR.com, which for more than 27 years has worked to promote entrepreneurship.