Recommended
More Related Content
Similar to Netflix - How they cracked the code to curb password sharing.pptx
Similar to Netflix - How they cracked the code to curb password sharing.pptx (20)
Recently uploaded
Recently uploaded (20)
Netflix - How they cracked the code to curb password sharing.pptx
- 1. Cracking the code: Netflix’s strategies to tame password sharing By Archana
- 2. Netflix: From Selling DVDs to Global Video Streaming Giant • Mailing movies: Netflix was founded in 1997 as a DVD by mail service, transforming how people rented movies. By offering unlimited rentals for a flat fee and eliminating late fees, Netflix disrupted the traditional video store model. • Video streaming takes center stage: In 2007, Netflix pivoted to streaming; offering a vast library of movies and TV shows on demand, forever changing how we consume entertainment. • Global entertainment powerhouse: Today with over 247 million subscribers worldwide, Netflix is now a leading entertainment provider. They produce award- winning original content, acquire popular shows and movies, and constantly innovate to keep viewers hooked.
- 3. The password sharing problem and more… • Negative impact on revenue: Netflix estimated over 100 million households worldwide are using shared accounts and hence cracking down on password sharing would be a “ big opportunity” for revenue growth • Decline in subscriber base: In 2022, it had lost around 200,000 subscribers, prompting many to wonder if Netflix’s golden era as an undisputed leader in video streaming was over
- 4. Strategies to curb password sharing to boost revenue (1/2) Account verification: • Netflix is able to use information such as IP addresses, device IDs and account activity to detect whether devices are being used within the same household • If they find any issue with any device using single account, the account holder is to be notified ( via registered email, phone numbers) • According to Netflix, primary account owners, and those who live with them, should be able to access their account without any verification while traveling. However, if the user is away from their household for an extended period of time, they may be occasionally be asked to verify their device. • All in all, It has restricted the usage to a single household. Devices logged in with different IP addresses other than the household will either be logged out or need to purchase their own membership for the account.
- 5. Strategies to curb password sharing to boost revenue (2/2) Paid account sharing: • Sub-accounts/ buy an extra member option: Allows its subscribers to add upto two extra members to their accounts for an additional fee • Transfer profile option: If you have someone using your Netflix account outside your household, you can transfer your profile to a new membership account that they have paid for All in all, this strategy will increase the number of subscribers for the company
- 6. The result • As of second quarter of 2023, 600,000 Netflix subscribers have been added globally i.e 3 times more than Wall Street’s expectations. • While the future of password sharing remains uncertain, Netflix's proactive strategies demonstrate its commitment to protecting its business model while offering users a valuable and personalized streaming experience