Netflix Explains Why The Delayed Their Password Sharing Crackdown And Also Will Be Winding DVD Rentals
Earlier this year, Netflix struck fear into its subscribers by announcing they would be putting the smackdown on password sharing, the time-honored tradition of having one person pay for a streaming service but pimping out the password for their friends’ satisfaction. I think that’s a perfect way to build community, but Netflix wasn’t having any of that since it was costing them millions of dollars. And Netflix still has plans to go through with the crackdown but explained why they delayed it for so long. They also explained they’re getting rid of their longstanding DVD service because it’s not 2003, and who the hell still has DVDs?
CNN Business reports the reason why Netflix decided to hold off on ruining families with their greed had absolutely nothing to do with growing a heart three times larger than the one it already has. It was primarily based on money, and since they saw an uptick in subscribers after their initial crackdown rollout, they realized that their original timeline was too soon. Instead, they’re prepared to crack the whip on password sharing within the next few months instead.
The company reported a net increase of 1.75 million global streaming subscribers, up nearly 5% from the same period in the prior year, but below the more than 3 million Wall Street analysts had expected.
Netflix said it has seen a “cancel reaction in each market when we announce the news” about the paid sharing option, but then it sees “increased acquisition and revenue.” By delaying the rollout, however, Netflix said “some of the expected membership growth and revenue benefit will fall in Q3 rather than Q2.”
Tuesday’s earnings report marks the first for new co-CEOs Greg Peters and Ted Sarandos, after founder Reed Hastings handed over the role and became executive chairman in January.
Now is the perfect time to share your Netflix password with EVERYONE because, pretty soon, it will no longer be an option. And more than likely, after that, Netflix will raise their prices yet again, and I hope they use those extra coins for better market research because did you know they still offer DVD services? I had no idea that was still a thing, but according to Yahoo! Finance, Netflix still offers the same mail-in DVD services they started with. However, it will be a thing of the past soon.
The company said Tuesday that it is ending its 25-year DVD rental business, noting that it plans to ship its final discs on Sept. 29.
“Our goal has always been to provide the best service for our members, but as the business continues to shrink that’s going to become increasingly difficult,” the company wrote in a release.
DVDs have become a shrinking percentage of Netflix’s revenue over the past several years as consumers increasingly shift to streaming services. Netflix reported 2022 DVD revenue of $145.69 million, down 20% from the prior year. By comparison, Netflix’s streaming revenue last year totaled $31.46 billion.
Well, Netflix, prepare to take another hit to your pockets because whatever DVDs you send out in September, you’re never getting any of those back. You’ve been warned.