SME#13: Love is (no longer) sharing a password
Streaming Made Easy #13
Welcome back to Streaming Made Easy. This week, we take a look at Netflix’s challenging roll out of new account sharing rules and how other streamers compare.
Today at a glance:
Analysis: Streamers’ approach to account sharing in light of Netflix’s roll out
Streamer snapshot: Dutch streamer, Videoland
Content recommendation: “Hacks”, a must watch & laugh HBO Max show
💡 Analysis:
The internet never forgets…🫣
Netflix's new account sharing rules came into effect in Canada, New Zealand, Spain and Portugal last week and it’s not going well to say the least.
Netflix had to clarify certain rules especially regarding the ability to watch Netflix while traveling.
Users have been ranting on social media or even filmed TikTok videos of themselves cancelling their subscriptions.
This one Tweet resonated with me: “You shouldn’t have to jump hoops to use your own service”.
I don’t want to debate whether Netflix should or shouldn’t restrict account sharing. It’s their business decision, they believe that 100M+ households use accounts they don’t pay for and as they look to grow their subscriber base (and generate revenues from said subs), this is a problem they decide to tackle.
One thing I do challenge is the methodology.
Focusing on a primary location defeats the purpose of what digital subscriptions offer: the flexibility to take them with you. The idea of having to sign-in every 31 days or needing codes in hotels looks a lot like having to jump hoops to use Netflix.
My take is that Netflix should have launched a dedicated Family Plan with more streams and devices but at a higher pricing and without a restrictive household definition. They could have kept existing plans but “enforced” account sharing by tracking simultaneous streams.
In any case, it's a teaching moment for every streamer. Clearly, you need to make it simple, test and learn some more before launching, see how the new rules reflect on your brand etc.
Now Netflix is in the uncomfortable situation of being the 1st one to crackdown password sharing:
What’s Hollywood take on this? Will other streamers follow? How do streamers consider account sharing today?
Variety surveyed 600+ industry execs and the verdict is split: 46% think it’s right to limit account sharing, 38% think it’s wrong but they seem to agree on the methodology, chosen by Netflix, being the wrong one.
I looked at Spotify, Apple and Amazon:
Spotify
The standard plan = one account = one stream at a time
What are the options available beyond the single plan?
The Duo Plan for couples
“For couples who reside at the same address.”
The Family Plan
“For families who reside at the same address”. I did include our address but wasn’t asked to prove anything when attaching a new family member.
When this plan launched, I took it immediately. It’s focused on the benefits, it’s explained in a simple way and it’s a bargain at 14.99€ (as we used to have two individual accounts at 9.99€ each). We’ve been with them since Dec. 2017 with this plan. Who wouldn’t want longstanding subscribers like that?! Now I don’t share beyond my family but some probably do. I wonder how Spotify views this.
Apple
Family Sharing: 6 family members can share access to Apple services like iCloud+, Apple Music, Apple TV+, Apple Fitness+, Apple News+, and Apple Arcade. They can also share iTunes, Apple Books, and App Store purchases. Finally, you can even help locate each other’s missing devices.
I joined Family Sharing and I remember thinking: Wow it’s so simple and smooth. I don’t believe I was asked to define a primary location or household address.
To me, Apple’s goal here is to reel you into their ecosystem, you then create your own mini ecosystem and when comes the time your kids need a phone or a tablet, what brand will you buy? Apple of course. Let’s see how they evolve in their thinking but for now having you onboard without restriction seems to be what matters most.
Amazon
As a Prime member, you can extend all your benefits to family members by creating an Amazon household. You and your invitee must live in the same country or region and share a preferred marketplace to create an Amazon Household.
Prime can't be shared with children. Prime Student members (trial or paid), Prime Video members (trial or paid), and customers who receive shipping benefits from another member can’t share their Prime benefits.
Twitch Prime and Amazon Music are only accessible to the Prime account holder (but you can always upgrade to a Family plan).
From these 3 examples, I sense the approach so far is to facilitate account sharing. If account sharing equals additional purchases, increase engagement hours, then streamers seem content.
Yes these rules are meant to be for a family or household but the measures in place to enforce a strict definition of a household aren’t there, at least for now.
Any company who had plans to go stricter on this will definitely take a close look at Netflix’s roll out.
Let’s see how Netflix comes out of this and how they decide to roll out in more markets. Will their brand reputation be hurt for good or just until their next global hit show?
📺 Streamer snapshot:
I’ve been riding my bike past numerous Videoland billboards lately and I must say: their out of home marketing made them top of mind when it was time to write this week’s streamer snapshot.
Videoland is a Dutch streamer, part of the RTL Group. The brand started as a video rental store in the 80’s. In 2010s, it became an on demand service. Today, it has over 1.1M subscribers (source: Earnings call / Digital TV Research) and has an hybrid business model with an ad-supported tier (@4.99€) and two premium tiers (@8.99€ and 10.99€). Their programming is strong of their parent company, RTL Nederland, with a mix of premium movies, TV series (both local and International), factual hits like Love Island, De Bachelorette etc.
Subscriber growth is slowing which isn’t surprising given that in 2022 alone, three new streamers entered the Netherlands: Viaplay (which gained 1.2M subs in a year’s time), HBO Max and Sky Showtime. 2023 will be interesting as the merger between RTL NL and Talpa Network was rejected by the local competition authorities (it’s the second failed sale for the RTL Group after the TF1/M6 one in France)…
Check them out 👉 Videoland
🎬 Content recommendation:
Hacks is one of my favorite show of 2022! After 10 minutes of episode 1, I knew I would love this show like crazy. It’s funny, emotional and without famous actors (although Jean Smart is pretty well known in the US) which means it all comes to how well it is written and played by the cast. It tells the story of a “has been” comedian who performs day in day out in Las Vegas and how a young trendy writer will change her forever.
Enjoy Hacks 👉 HBO Max
That’s it folks. Enjoy your weekend and see you next Friday for another edition of Streaming Made Easy!
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