Why do you think Netflix is going down this path so aggressively? - trying to convert existing free password sharing accounts to new customers. This would increase growth of the paid customers and increase in subscriptions.
If you were leading this initiative, how would you define success? - Revenue Growth, Churn mitigation, customer sentiment and conversion rates.
What other approaches could you have explored instead of limiting sharing?
For #1 - I think potentially Netflix will see a decrease in Premium subscription while increasing the base for non-premium options. This would be mainly due to price.
For #2 - conversion rates, since Netflix is tracking non-household account logins, it has a way to track these secondary logins. They could check if these secondary became primary households which in turn suggest customer conversion.
Churn can be measured via downgrades or cancel. To mitigate it - they could identify some freebies or other options to retain the customer.
1. Definitely the pie size is not increasing but competition is. Too many platforms now provide competing content especially in India and across the globe. Netflix knows playing constant catch is not sustainable and needs to monetised the existing base as much as possible (better CAC?)
2. Given that Netflix tracks IPs, location, etc to figure out multiple users, as a PM I would want to use these identifiers to create unique users at the backend and then track MoM how many get separate accesses or upgrade to shared account over time (x in x% reduction of unpaid shared accounts remains a question)
3. I would mostly not try to rile up more customers especially given that the market has too many options for the users to switch. I can allow people some base credits (mins, points, etc) which non paying users can use from the main account to watch content. Idea is not to shoo them away but nudge them for paid account. These mins/points can be bought as well instead of directly upgrading the account. This also incentivises the main account holder to distribute password more judiciously. These mins/points can only be used by non main account maybe. And at the same time start getting more aggressive on removing non paid users through force logouts.
Delayed content for non main account users can also be a way to do this. Callout that since you are a non paid user, you cannot get this content before 30 days or so
1. Are you saying that cracking down on password sharing is their way of increasing monetisation of existing base?
2. Okay so you would look at growth in paid accounts and reduction in shared password? Don't you think growth in accounts would be led by multiple factors? How would you attribute it to this specific feature?
* Why do you think Netflix is going down this path so aggressively?
The path/objectives of a public company relays over increasing revenue, ARPA and MAUs. With that in mind, CEOs objectives in the short term go over those numbers and one clear/quick win is to increase all of those metrics through the removal of shared accounts.
* If you were leading this initiative, how would you define success?
Financial success is meassured in the improvement of the previous metrics (Revenue, ARPA and MAUs) in the short term but, in the long term, I would add the retention and NPS of the users that, before that change, had a shared account with multiple locations login.
* What other approaches could you have explored instead of limiting sharing?
- Limit the ability of watch the same show/movie twice in different locations in a priod of time (1 month), to ease the access from several locations for the same user but to avoid the "sale" of accounts and the sharing between friends to watch the latest show
- Limit the number of hours in second locations (not the main one), to ease the travel login or second homes from the main user
- Auto-log out every 48h to complicate the password sharing
- Increase gamification with achievments such as Xbox Live, Steam and even create rewards for watch a show in a determined time (Steam alike)
1. So you're saying the single/most imp goal for this feature is increased revenue?
2. How would you attribute increase in revenue to this feature? Would that not be driven by multiple initiatives like marketing, pricing, content quality, etc.?
If Netflix has to maintain a balance between Growing and Managing misuse of number of logins held by a customer, as PM I would optimize the subscription model firstly especially in geographies like India. Competitor analysis Secondly, the household login is something which I would like to focus on improving. A customer could be paying for 4 accounts and these accounts can login from different geographical locations. I have often noticed even though accounts logged in is withing permissible limits, users are asked to log out of device if there is a change in their location. At any point in time the number of devices actively availing subscription benefits need to be checked and not how many devices they logged in to few days or months back but didnt log out. When a user logs into an account there must be a warning pop up displaying the number of devices the account is using and user must be allowed to make a choice of logging out of any of the devices which might now be in use.
Why do you think Netflix is going down this path so aggressively? - trying to convert existing free password sharing accounts to new customers. This would increase growth of the paid customers and increase in subscriptions.
If you were leading this initiative, how would you define success? - Revenue Growth, Churn mitigation, customer sentiment and conversion rates.
What other approaches could you have explored instead of limiting sharing?
1. Price increase Option for password sharing.
2. Limit the sharing per geographic location
3. Friends/Family plan
4. Ads for non primary account holders.
Few questions:
1. do you think on a net level, subscriber base will increase or decrease via this
2. For the metrics you shared, can you clarify how you measure them? What is the mathematical way of thinking about them?
For #1 - I think potentially Netflix will see a decrease in Premium subscription while increasing the base for non-premium options. This would be mainly due to price.
For #2 - conversion rates, since Netflix is tracking non-household account logins, it has a way to track these secondary logins. They could check if these secondary became primary households which in turn suggest customer conversion.
Churn can be measured via downgrades or cancel. To mitigate it - they could identify some freebies or other options to retain the customer.
1. Definitely the pie size is not increasing but competition is. Too many platforms now provide competing content especially in India and across the globe. Netflix knows playing constant catch is not sustainable and needs to monetised the existing base as much as possible (better CAC?)
2. Given that Netflix tracks IPs, location, etc to figure out multiple users, as a PM I would want to use these identifiers to create unique users at the backend and then track MoM how many get separate accesses or upgrade to shared account over time (x in x% reduction of unpaid shared accounts remains a question)
3. I would mostly not try to rile up more customers especially given that the market has too many options for the users to switch. I can allow people some base credits (mins, points, etc) which non paying users can use from the main account to watch content. Idea is not to shoo them away but nudge them for paid account. These mins/points can be bought as well instead of directly upgrading the account. This also incentivises the main account holder to distribute password more judiciously. These mins/points can only be used by non main account maybe. And at the same time start getting more aggressive on removing non paid users through force logouts.
Delayed content for non main account users can also be a way to do this. Callout that since you are a non paid user, you cannot get this content before 30 days or so
1. Are you saying that cracking down on password sharing is their way of increasing monetisation of existing base?
2. Okay so you would look at growth in paid accounts and reduction in shared password? Don't you think growth in accounts would be led by multiple factors? How would you attribute it to this specific feature?
* Why do you think Netflix is going down this path so aggressively?
The path/objectives of a public company relays over increasing revenue, ARPA and MAUs. With that in mind, CEOs objectives in the short term go over those numbers and one clear/quick win is to increase all of those metrics through the removal of shared accounts.
* If you were leading this initiative, how would you define success?
Financial success is meassured in the improvement of the previous metrics (Revenue, ARPA and MAUs) in the short term but, in the long term, I would add the retention and NPS of the users that, before that change, had a shared account with multiple locations login.
* What other approaches could you have explored instead of limiting sharing?
- Limit the ability of watch the same show/movie twice in different locations in a priod of time (1 month), to ease the access from several locations for the same user but to avoid the "sale" of accounts and the sharing between friends to watch the latest show
- Limit the number of hours in second locations (not the main one), to ease the travel login or second homes from the main user
- Auto-log out every 48h to complicate the password sharing
- Increase gamification with achievments such as Xbox Live, Steam and even create rewards for watch a show in a determined time (Steam alike)
1. So you're saying the single/most imp goal for this feature is increased revenue?
2. How would you attribute increase in revenue to this feature? Would that not be driven by multiple initiatives like marketing, pricing, content quality, etc.?
If Netflix has to maintain a balance between Growing and Managing misuse of number of logins held by a customer, as PM I would optimize the subscription model firstly especially in geographies like India. Competitor analysis Secondly, the household login is something which I would like to focus on improving. A customer could be paying for 4 accounts and these accounts can login from different geographical locations. I have often noticed even though accounts logged in is withing permissible limits, users are asked to log out of device if there is a change in their location. At any point in time the number of devices actively availing subscription benefits need to be checked and not how many devices they logged in to few days or months back but didnt log out. When a user logs into an account there must be a warning pop up displaying the number of devices the account is using and user must be allowed to make a choice of logging out of any of the devices which might now be in use.
1. How would you select geographies to focus on?
2. What is the goal with the pop up showing number of logged in devices?