Have you ever shared your Netflix password? For many people, the answer to this question is undoubted yes. Parents, sweethearts, and friends often share Netflix passwords to allow their favorite people to watch movies & shows.
And Netflix has had enough. New rules regarding how passwords can be shared and with those who have recently debuted. Using a very traditional definition of family, Netflix now demands extra fees be paid for access for anyone who can not access the primary subscribing household’s internet at least once every thirty days.
Netflix customers have not well received this news.
As Competition Increases, Love Becomes Much More Important
While Netflix pioneered streaming services, they’re no longer the only game in town. There are over 50 streaming sites in the US alone – including big players like Paramount and Disney Plus, which have robust libraries of highly desirable content. More than 50% of households that subscribe to streaming services are subscribed to more than one.
In this highly competitive environment, the relationship between brand and customer becomes even more important. Netflix’s moves to tighten up account access introduces a degree of difficulty into what was previously easy for their customers. The idea that a college student or partner working at a great distance from the family home now has to return once a month to log into the home internet account to access a subscription the household pays for is aggravating, insulting, and often impossible.
On the other hand, the 50+ other streaming services don’t have this requirement. This gives the many families who would fall under Netflix’s new guidelines the opportunity to question if their subscription is worth it.
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Customer reactions to Netflix’s move have focused mainly on its financial implications for their household. A parent with two college students living some distance away will now have to pay $45 monthly for Netflix instead of $15.
The Netflix leadership might counter with the information that they’re having financial troubles too. Massive subscriber losses over 2022 have led the streaming service to take several steps to stabilize their finances. Ads have been introduced, and now the password-sharing limits are being implemented in hopes it will boost revenues.
However, these moves are doing little to endear Netflix to its customers. Diminishing the quality of the customer experience and treating customers in a way that makes them feel like criminals does not build loving feelings. And without love, customers will leave – compounding the problems Netflix already is having.
Why Not a Love-Building Strategy?
Netflix has options. Some of the most creative minds in the world work there. So why don’t we see a strategy to counter their real problems based on increasing the amount of love customers have for the brand?
When you love someone and want them to stay, you don’t start treating them worse. Of course, that’s my thinking based on years of helping cult brands achieve and maintain their dominant positions. I’d love to hear how you would address this situation. Please share your thoughts below.