Netflix is finally cracking down on password-sharing in some of its markets, including the United States. This decision comes out during a key moment for the best streaming services - Disney Plus and Hulu are introducing shows and pulling movies, while HBO Max is switching to MAX. From now on you have to pay more to share Netflix with family members in other locations, besides your household - within the same internet connection. Let's check all the details about this situation from the business perspective.

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Some may think there are ways to handle this situation: you can try and challenge the notification by switching your primary location, but that will influence people using the same Netflix account somewhere else. It is not going to work. In the past, some consumers tried the VPN way to watch content that was in their country’s version of Netflix. VPNs don't let Roku devices or Fire TV sticks appear to be in a specific household, so I don’t think you can outsmart the streaming giant here. The platform itself offers a solution - instead of a new account, you can get "an extra member" of your household - much cheaper than setting up a new account and all the lists and favorites.

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Why is Netflix doing this? More customers will need to add extra users to their accounts, or simply set up new accounts, resulting in a wider customer base. Furthermore - as the number of users increases, more data is to be gathered in order to improve content recommendations and personalize the user experience. Let's not forget about security issues - with fewer people accessing an account, the risk of unauthorized access is reduced.

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Are there any threats? Let's start with dissatisfied users that may find the subscription cost too high, or simply can't pay for their own accounts. They can leave no matter the content offered. And what about alternatives? Consumers might turn to other platforms or services that allow account sharing. This could lead to increased competition for Netflix and a potential loss of market share. But the platform claims that password-sharing has been impacting its ability to invest in new content, so now there will be more and more good quality movies and series. 

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#StreamVX #SzymonKarbowski #streamingwars

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