Streaming service giant Netflix has recently taken action against the sharing of passwords, impacting demanding single households in particular. The move to stop password sharing means these users will now have to take out the expensive premium/family subscription to watch content in 4K resolution (3840 × 2160 pixels) and high contrast (High Dynamic Rage, HDR). The basic subscription costs €8 per month and only provides a resolution of 1280 × 720 pixels, while the standard subscription for €13 provides 1920 × 1080 pixels and no HDR images in either package. The only subscription that allows for 4K resolution and high contrasts while allowing for four simultaneous streams is the pricey premium subscription at €18 per month.
Netflix continues to raise its subscription fees in Germany, with the costs for standard and premium subscriptions rising for years by approximately five percent year-on-year to 232.5 million subscriptions. Adding to this increased expense, the platform faces further challenges as more and more entertainment giants launch their own streaming platforms, such as Disney+ and Paramount+. Netflix’s own costly in-house productions have often been unsuccessful.
Despite the increased costs and decreased output, Netflix continues to grow. Currently valued at approximately $30 million per month, the platform made roughly 7.9 billion USD in sales from January to March 2023. However, as more expensive in-house productions fail and costs continue to rise, many users are being put off by Netflix’s recent move to stop account sharing.
It should be noted that while the cost of a shared premium subscription for four people may seem low at €4.50 per month, there should be a middle ground between the price point of €18 and €4.50 without having to settle for outdated technology. With affordable TVs featuring 4K resolution available for under €300, 720p resolution in a basic subscription is no longer relevant, and Full HD or 1080p resolution is becoming increasingly outdated.
Many users are deciding to consume content more consciously in the future, perhaps subscribing to Netflix for only a month or two during the winter months to binge-watch their favorite shows. However, some users may choose to cancel their subscriptions entirely.
In conclusion, the move to stop password sharing may impact some households, but with more affordable 4K TVs available, users may be more inclined to upgrade their viewing experience. As Netflix’s prices continue to rise and the competition increases, consumers may need to adjust their consumption habits accordingly.
