> Definitely the case for me. I am able to help out 10-20 family members across 4 countries,
You're sharing an account with 20 people across 4 countries? It's honestly kind of amazing that they let this level of sharing go on for so long.
It's hard for me to believe that out of 20 different people, every single one of them would decide to boycott Netflix forever because of this. If even 1 of those people decides to re-subscribe, Netflix has lost nothing. If 2 or more subscribe, they win.
Extrapolate this across their userbase and it's not hard to see why they're doing it. Obviously some people will cancel, but I guarantee Netflix has run pilot trials and analyzed the net effect to their bottom line.
> If even 1 of those people decides to re-subscribe, Netflix has lost nothing. If 2 or more subscribe, they win.
While extrapolating over a large dataset, it's important to get the initial numbers as correct as possible. Since the person you're replying to is paying for the most expensive plan (probably to get the 4x devices-at-a-time perk for so many people), the plan those people would re-subscribe at is important (and less likely to be the same plan if only for one person).
They'd need at least 3 people to re-subscribe on either of the two cheapest plans to net a profit, or they'd need at least 2 people to re-subscribe on the "Standard" $16/mo plan to net a profit. Anything less is a net negative. It's a favorably-biased population for Netflix, but that'd still require a 15%-30% conversion rate for users.
I'm sure they'll come ahead in the end, but I imagine a high % of the expected profit comes from cutting costs from serving 20x "free" users per plan rather than converting them into paying users themselves.
You’re assuming they have no variable costs (content fees, peak demand services) in delivering the service. One person at $12.99 a month is certainly more profitable than 10+ at < $1.799/mo.
You're sharing an account with 20 people across 4 countries? It's honestly kind of amazing that they let this level of sharing go on for so long.
It's hard for me to believe that out of 20 different people, every single one of them would decide to boycott Netflix forever because of this. If even 1 of those people decides to re-subscribe, Netflix has lost nothing. If 2 or more subscribe, they win.
Extrapolate this across their userbase and it's not hard to see why they're doing it. Obviously some people will cancel, but I guarantee Netflix has run pilot trials and analyzed the net effect to their bottom line.