When you think of streaming, you think of Netflix. But the industry leader has not only caused a stir with films and series worth seeing. Subscribers worldwide face chaotic actions of the service provider and get confused. Has Netflix perhaps gambled? There is now a first attempt at clarification in today’s issue of my weekend column at GIGA.
In terms of quality, things went uphill again for Netflix, after all, for example, the in-house film “Nothing New in the West” 9 nominations for the Oscar 2023 collect. The film is the first German-language film to have a chance of being awarded the best film and the best international film at the same time – something like this has never happened before.
Netflix wants additional fee, but also cuts prices: what’s going on?
What didn’t exist before was one Additional fee for so-called “account sharing”. It wasn’t that long ago that Netflix even advertised it or, in the face of its success, tolerated it generously. But those times are over. Netflix is now cashing in in some countries. So if you share the password with someone outside your own household, you have to pay. For example, in Spain, almost 6 euros are added to the regular monthly price. German customers are still spared at the moment, but Netflix will still get into our wallets this year and ask for an extra fee.
Netflix doesn’t make friends with such harassment. The majority of customers firmly reject such an additional fee and would rather quit (Source: golem). However, the streaming provider does not let this stop them for the time being.
Hard to believe, but Netflix celebrated its 25th birthday last year. Confused? The clarification in the video:
On the other hand, Netflix has now lowered prices in over 35 countries, some massively. How can this be? Well, the company has not really discovered a social streak for itself, because the price reductions in Kenya, Thailand or Ecuador, for example, only have something to do with the cost of living there to a limited extent. Ultimately Netflix only lowers prices where the provider is in a bad position and pressured by competition. In western countries this is probably not the case, or not enough. Ergo: We here in Germany and elsewhere tend to have to pay more rather than less.
My thoughts for the weekend: The column aims to provide food for thought and reflect on the week’s “news flood” towards the end. A small selection of previous articles in the column:
Netflix discovers the market economy for itself
In my opinion, Netflix has not yet gambled away. Because the price reductions are probably not necessarily related to the customer’s rejection of the additional fees for “account sharing”. Currently, the company is acting more like a typical market player who charges its customers where it is possible – market economy like a textbook. Netflix is just testing its limits. However, if the survey results are correct and a majority of customers actually turn their backs on the provider, cutbacks should probably also be made in Germany and lure customers with price advantages.
Bottom line: The supposed price chaos at Netflix is not a jumble, but pure calculation – Not more but also not less. We don’t have to like this, although I could warm up to another, much fairer price model at Netflix one way or another. Read about it in a previous issue of this column.