[HN Gopher] Netflix to start testing warnings for people borrowi...
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       Netflix to start testing warnings for people borrowing login info
        
       Author : sharkweek
       Score  : 48 points
       Date   : 2021-03-11 14:12 UTC (8 hours ago)
        
 (HTM) web link (gammawire.com)
 (TXT) w3m dump (gammawire.com)
        
       | seneca wrote:
       | I struggle to see Netflix existing in its current form in 5
       | years. Their content is just awful, and the continuous price
       | hikes just aren't justified. If they also start cracking down on
       | shared accounts, I can only see it hastening their demise.
        
         | gt565k wrote:
         | Huh? Their content is far better than any of their competitors.
         | I have no idea what you're talking about. They've been pumping
         | out amazing original series and movies.
        
           | seneca wrote:
           | Going to have to respectfully disagree. There's no accounting
           | for taste, but I haven't made it through a full episode of a
           | Netflix original since House of Cards, barring series they
           | bought and labeled originals. I consider their original
           | content very bottom of the barrel.
        
             | dahart wrote:
             | What's better content that also allows account sharing from
             | different locations?
        
         | Mindwipe wrote:
         | This was a popular sentiment when they started blocking VPNs on
         | Hacker News.
         | 
         | A lot of money to be made betting against it.
        
           | seneca wrote:
           | Yes, very fair statement. I don't think they were really
           | under strong competitive pressure until somewhat recently
           | though. You can get away with quite a lot when you're the
           | only game in town. Less so when Disney are your competition.
        
       | websites2323 wrote:
       | Google Voice numbers are cheap. If SMS is the only barrier to
       | verifying and they don't block it, could be easy to circumvent.
       | 
       | But then again, this and every other technical "solution" to this
       | problem presented here (piracy, etc) is far beyond what a normal
       | user could be bothered to implement.
       | 
       | I get it. Business team needs to see an upward trend in account
       | sign ups and they're seeing a plateau. This move will get the
       | normal users legitimized and it will delay a bigger increase in
       | cost for a year or two.
        
       | 4ggr0 wrote:
       | The Netflix I pay for is currently used by:
       | 
       | Me, Mom, Dad, Grandparents, GF, GFs Mom.
       | 
       | Other than myself and my GF, most of the people on this list
       | watch something on Netflix every couple of months, when I or
       | someone/something else recommend them a movie or show.
       | 
       | I don't want them to use my profile, because we then obviously
       | can't watch the same things, and it'll break my recommendations.
       | I get why Netflix wants to split up accounts. Currently, they get
       | approximately $240 per year from me and my family. If everyone
       | has to create their own account, that number goes up to $1200.
       | 
       | But that's how my family lives. Parents are separated,
       | grandparents live in their own house, my gf at home with her mom
       | and I alone.
       | 
       | My dad in turn pays Disney+ for me, Spotify is paid by my GFs
       | mother, grandma cooks me a couple of Lasagnas every year. We just
       | share these services.
       | 
       | Should my grandma pay $240 per year, to watch two movies I
       | recommend to her (and are ONLY watchable on Netflix)?
       | 
       | In the end, these streaming platforms are probably right that you
       | shouldn't be allowed to share accounts if you don't live under
       | the same roof, but it still kinda pisses me off.
       | 
       | Don't really know what I should think about this to be honest...
        
         | eCa wrote:
         | From that use case, what is likely to happen is everyone having
         | their own account _but_ being more active in canceling and
         | rejoining. I doubt Netflix revenue will increase to much above
         | $240 in the end.
        
           | 4ggr0 wrote:
           | Probably, yeah. At least my grandparents and my mom would
           | probably not get their own accounts.
        
         | fao_ wrote:
         | > Don't really know what I should think about this to be
         | honest...
         | 
         | Ultimately, piracy is the only remaining option. Because the
         | company has decided it's going to brand you a pirate anyway.
         | 
         | It costs maybe 11$/mo to hire a seedbox running plex that can
         | store whatever media you would want to watch. While it's not
         | next-day or same-day in most cases, in my experience it covers
         | basically everything you would want to watch, along with
         | collaborative watching, which is a perk netflix does not have.
        
         | BrandonSmith wrote:
         | > Don't really know what I should think about this to be
         | honest...
         | 
         | All subscription services must account for some form of average
         | use. High usage customers are offset by low usage. Thus, it is
         | likely with so many people on your account that others are
         | subsidizing your account's usage.
         | 
         | Nevertheless, I don't think Netflix cares about your low usage
         | family members, like your grandmother. They care about your
         | high usage family and want to get them in their own account.
         | 
         | Netflix already has subscription tiers that varies the number
         | of screens that can simultaneously watch or device downloads.
         | Perhaps Netflix could help honest people be honest by creating
         | tiers with modest increases for different households. Maybe $5
         | for each additional household?
         | 
         | I am sure they have discussed and don't yet have a great way of
         | enforcing such. One option could be true "sub-accounts" where
         | the sub-account pays for the bump of $5 with a credit card that
         | must be tied to a different address?
        
         | eatbitseveryday wrote:
         | > Currently, they get approximately $240 per year from me and
         | my family. If everyone has to create their own account, that
         | number goes up to $1200.
         | 
         | Typo of extra zero? Is this US dollars?
         | 
         | The most expensive digital plan is 17.99 USD / month. With
         | discs, few $ more.
         | 
         | USD 240/month is excessive.
        
           | 4ggr0 wrote:
           | As others already pointed out, I wrote that it's per year.
           | 
           | But I quickly looked at it, the amounts I mentioned are even
           | too low. Converted to USD, I pay $23 per month. So $276 for
           | one person, or $1380 for my use-case.
           | 
           | Keep in mind that not everyone is from the US :)
        
           | bussierem wrote:
           | > $240 per _year_ from me and my family
        
           | [deleted]
        
           | [deleted]
        
           | jjk166 wrote:
           | per year
        
           | [deleted]
        
           | [deleted]
        
           | NeutronStar wrote:
           | I'd suggest you to reread his comment as he's saying it is
           | per year.
        
         | RHSeeger wrote:
         | What is it that you think is appropriate for you to be pissed
         | off about? You pay for Netflix for you and your household, not
         | for anyone that happens to be related to you. Has that ever not
         | been the case?
        
           | tomjen3 wrote:
           | The Netflix plan I pay for allows two simultaneous views and
           | permits different profiles. On what possible ground should it
           | matter what physical location those two screens are viewed
           | at?
        
           | backtoyoujim wrote:
           | What exactly is Netflix pissed about ?
           | 
           | Their stock is over $500 a share.
           | 
           | In 2020 Netflix has positive cashflow of $1.9 billion.
           | 
           | What are they pissed about ?
        
             | ALittleLight wrote:
             | Netflix's share price is ~80 times earnings. Their
             | investors expect them to grow.
        
             | viklove wrote:
             | It's never enough
        
               | stevegalla wrote:
               | I won't be shocked when they start introducing ads,
               | reduced ads accounts, and premium content subscriptions.
        
             | 535188B17C93743 wrote:
             | Stock owners.
        
           | fishtacos wrote:
           | Perhaps because they've doubled their streaming service's
           | cost, reduced their content amount and availability, and are
           | now properly warning they are going to be cracking down on
           | geographically distant usage by users of the same account.
           | 
           | At this point I'm paying 20 USD/m for Netflix, roommate for
           | HBOMax, friend's password (via reciprocal sharing) for
           | Disney+, and our online TV service, which my elderly disabled
           | mother can't go without.
           | 
           | The post-cable/satellite TV revolution has tripled my costs
           | from what it used to be.
        
             | RHSeeger wrote:
             | > geographically distant usage by users of the same account
             | 
             | But that's just it. A Netflix account isn't valid "for you
             | and anyone you think it is". It's valid only for people in
             | the same household. The thing they are cracking down on is
             | people using the account in a way that they were never
             | supposed to.
        
               | fishtacos wrote:
               | If your account is usable by 2 people of the same
               | household and 1 moves out and continued paying half of of
               | the Netflix bill... would you expect them to be booted
               | out? So how does Netflix make a differentiation?
        
               | Sohcahtoa82 wrote:
               | If that person moves out, they are no longer a part of
               | that household.
        
         | macksd wrote:
         | The number wouldn't go up to $1200 - most of your family would
         | get by just fine without Netflix because it simply isn't worth
         | what it costs to them. The needle will move on Netflix's
         | revenue and subscriber count, and their costs will slow down.
         | And largely the people affected will forget about this.
         | 
         | The really fair way to price this is by concurrent viewers,
         | independent of location, and they already have that feature. I
         | too have my in-laws logged into my Disney+ account which they
         | never use. But if they watch my kids, and my kids want to pick
         | up where they left off on the Bluey episode, it's both my
         | profile they need and my responsibility to pay for it.
        
           | pbronez wrote:
           | I also have this use case and think it's really important.
           | When I was a kid you could take a favorite VHS or DVD with
           | you. Now you take your subscription. Sure, I guess you could
           | take a phyusical authorized device (e.g. an iPad) with you,
           | then screen cast it. But that requires grandma to figure out
           | screen casting. And I'm trusting my kid with a $300 device
           | instead of a $15 media artifact. Lame.
        
             | macksd wrote:
             | I'm actually curious if the physical device looks any more
             | innocent in Netflix's future policies than straight-up
             | credential sharing. It's still coming from a new IP.
        
               | tomjen3 wrote:
               | If I have a Netflix account and I (post-pandemic) go to
               | an ANB rental I would be pissed if my account didn't work
               | there.
               | 
               | I subscribed the first month Netflix came to Denmark (my
               | country) and I kept the subscription up for a decade
               | until they started to degrade the stream too much. They
               | fixed that and I eventually came back but stuff like that
               | would turn me of for good.
        
         | PragmaticPulp wrote:
         | > Should my grandma pay $240 per year, to watch two movies I
         | recommend to her (and are ONLY watchable on Netflix)?
         | 
         | This seems more like an edge case. If grandma is only watching
         | a couple movies per year, would Netflix even bother throwing up
         | a warning message? If she didn't have her own profile in your
         | account, it would be difficult for Netflix to even know if this
         | was a shared account or if you were just logging in at her
         | house during an occasional visit.
         | 
         | They're not rolling this out to go after grandma watching a
         | couple movies per year.
         | 
         | It's more likely that they're targeting the heavy users who
         | share a single account. People who would have their own
         | subscription in a heartbeat if they could no longer exploit the
         | shared account loophole.
        
           | 4ggr0 wrote:
           | You actually bring up a good point. I thought that they'll
           | just show this message to everyone, but maybe you're right
           | and they analyze the usage somehow to only notify people who
           | are abusing it.
           | 
           | Else, how do you handle people going on business trips and
           | vacations?
        
         | sandworm101 wrote:
         | I think that you are upset about the subscription model not
         | serving your use case. Pay-per-view is probably more
         | appropriate for those who only want to watch a couple movies
         | every month, put ppv isn't available. Customers instead share
         | their accounts with family members. It is dirty rotten piracy
         | and anyone doing it is stealing bread from the mouths of babes,
         | but that's what happens when the legitimate system fails to
         | offer the delivery model that the customer wants.
         | 
         | My story: I have amazon prime, but no proper screens that can
         | watch it (linux) and there isn't much on prime that I care to
         | watch anyway. So my parents in another state use the account.
         | Should amazon care? They are still only streaming to one IP but
         | the reality is that we are all pirates.
        
           | mannerheim wrote:
           | Hm, that's bizarre, I can watch Amazon Prime on Linux.
        
             | sandworm101 wrote:
             | >> I can watch Amazon Prime on Linux.
             | 
             | Everything and anything it _possible_ on linux. The
             | question is whether I want to bother. I could probably
             | disable my browser 's security features and get it working,
             | install some proprietary whatever, but it isn't worth than
             | hassle imho. I've got better stuff to watch than
             | netflix/amazon junk. Whenever I have a hour to kill my
             | first choice tends to be the BBC.
        
             | woodrowbarlow wrote:
             | you have (or your distro has) installed the widevine drm
             | plugins for firefox (or whatever browser) that are included
             | by default on windows and mac os. these are proprietary
             | plugins, but some convenience-oriented distros distros
             | include them because many users expect them.
             | 
             | some linux users are on linux because they want to
             | eliminate proprietary software from their computer
             | altogether. which means no access to un-broken drm media.
        
             | 4ggr0 wrote:
             | I think it depends on how mainstream your distro is, or
             | maybe on what browser you use. When I used Linux, every
             | streaming platform ever told me that my browser wasn't
             | compatible to stream.
        
           | javagram wrote:
           | > Pay-per-view is probably more appropriate for those who
           | only want to watch a couple movies every month, put ppv isn't
           | available. Customers instead share their accounts with family
           | members
           | 
           | PPV is available for most movies, you can rent them from
           | iTunes or amazon for $3-5 for a single watch in my
           | experience.
           | 
           | Ultimately the best delivery model for the customer would be
           | $0 for unlimited free streaming of movies and music, of
           | course that would tank the industry and stop new production
           | so a balance must be found in terms of what customers will
           | tolerate vs what is needed to fund new content production.
        
             | leereeves wrote:
             | > PPV is available for most movies, you can rent them from
             | iTunes or amazon for $3-5 for a single watch in my
             | experience.
             | 
             | Which is insanely expensive. $5 buys a month of Apple TV+,
             | almost 2 weeks of Netflix, or 2 hours of PPV.
        
       | adamleithp wrote:
       | I'm one of these people. I use my brothers account (in Canada)
       | and I'm in the UK. Got the pop up on my smart TV just 2 days ago.
       | 
       | Netflix really doesn't have much for me anymore... not really
       | sure I'm going to use their service.
        
       | nashashmi wrote:
       | Netflix limits the number of streamers on an account. That should
       | allow for account sharing.
        
       | sitkack wrote:
       | Netflix should formalize this, things that move together, wear
       | together.
        
       | Navarr wrote:
       | Could you imagine living with your spouse who owns the account on
       | their email; your spouse is at work or on a business trip - maybe
       | even out of the country, and you get this screen (or maybe you
       | are!)
       | 
       | Authorized Devices with a limit is a better choice
        
         | 4ggr0 wrote:
         | > Authorized Devices with a limit is a better choice
         | 
         | Well good luck figuring out what that limit should be.
         | 
         | I know households where everyone owns a smartphone and shares a
         | single TV, and other households where every kid has their own
         | TV, Playstation etc.
         | 
         | Maybe max 3 devices per person?
        
       | Nextgrid wrote:
       | This just gives piracy yet another advantage.
       | 
       | The article clearly mentions that credentials sharing is
       | currently used as a mitigation to the balkanization of streaming
       | services, allowing the cost of all major subscriptions to be
       | spread across several people, essentially bringing down the per-
       | person cost to a reasonable, single subscription's cost.
       | 
       | Cracking down on this doesn't mean people will start paying, they
       | will just go back to illicit means of watching the content.
        
         | paxys wrote:
         | My mom and grandma currently share my Netflix account. If
         | Netflix cracks down on it they aren't going to start
         | torrenting, but will either get their own subscriptions or not
         | watch Netflix at all. I assume the suits at Netflix have run
         | the numbers and are confident that enough people will fall into
         | the first category to justify this move.
        
           | moate wrote:
           | It feels like this is them running the numbers. It's a small
           | rollout. Looks like a classic A/B.
        
           | fao_ wrote:
           | Or you could switch to renting a seedbox and using
           | plex/jellyfin
        
         | dahart wrote:
         | How is using someone else's account not piracy?
        
           | 4ggr0 wrote:
           | If you can't share accounts, why can you create a seemingly
           | unlimited amount of profiles?
        
             | dahart wrote:
             | They aren't unlimited, there are 5. Profiles are defined as
             | being in the same household. The reasons are easy to
             | understand, if you think about it. Netflix is providing
             | separate queues and ratings for people who have to share,
             | and household sharing is unavoidable in some cases, such as
             | when using shared devices like ipads or game consoles.
             | 
             | Or, you could just visit Netflix.com, where they explain
             | the reasons behind profiles. "Profiles allow different
             | members of your household to have their own personalized
             | Netflix experience. You can have up to 5 profiles on a
             | single Netflix account."
             | https://help.netflix.com/en/node/10421
             | 
             | Sharing accounts outside of a household is stealing. I fail
             | to see a big difference between that and any other form of
             | illegal downloads where one person pays and someone else
             | copies. I got some downvotes but nobody bothered to answer
             | the question: how is using someone's account who doesn't
             | live with you different in practice from torrenting, from a
             | legal perspective?
        
         | wrkronmiller wrote:
         | or people will just create a shared email account, or set up a
         | forwarding rule for the verification emails...
         | 
         | I agree with another commenter. This seems targeted at people
         | who are borrowing someone's account without their knowledge or
         | consent.
        
           | Nextgrid wrote:
           | This kind of effort (presumably the verifications will be
           | constant - one location being verified will trigger re-
           | verification on all other locations) will just make people
           | realize that piracy isn't _that_ difficult to set up either
           | and might make them reconsider using streaming services
           | entirely.
        
       | tw04 wrote:
       | I think this is going to have the exact opposite effect of what
       | they're going for. I know plenty of people who split the cost of
       | an account because they can't justify the full price. The
       | continual price hikes, and now this?
       | 
       | I'm sure the bean counters have done the math and they'll come
       | out ahead, but losing content + raising prices and now killing
       | off people sharing accounts is just a bad look. This is yet
       | another category of business where I think they'd be far better
       | off being private, so in theory there isn't constant pressure to
       | continue increasing revenue. Once you have market penetration,
       | the only way you're increasing revenue is through customer
       | hostile actions (like increasing the price of the service while
       | decreasing the cost to provide it).
        
         | gt565k wrote:
         | Nah... if you can't justify $10-15 a month, but you spend 10+
         | hours binge watching, maybe you should get a side hustle or
         | drive uber/lyft.
         | 
         | Peanuts cost argument doesn't hold any water.
        
           | stanmancan wrote:
           | It's not just $10-15 since content is spread out over so many
           | services. We pay for: Netflix, Disney+, Apple TV, Hulu,
           | Crunchy Roll, Apple Music.
        
           | d0100 wrote:
           | For someone that has 10+ hours to binge-watch, that time will
           | just be spent on something cheaper-free
           | 
           | They won't get extra work because they don't want to, they
           | want to spend 10+ hours having cheap/free fun
           | 
           | I know this because I am one of those people, ha!
        
         | mrits wrote:
         | If you look at who their competition is I would think they have
         | a long ways to go before being considered the bad guys
        
           | moate wrote:
           | I am infinitely happier with my stream service mix vs my last
           | cable subscription. And if you consider their competition
           | other streaming services, Netflix is already the 800lb
           | gorilla in the room. It's why you saw things like CBS+ get
           | rolled into Paramount, or HBO up their ante by bundling a ton
           | of other brands content into HBOMAX. Not enough people want a
           | single channel offering, even for $3.99.
           | 
           | Personally, I have to agree with you that they have a _long_
           | way to go before I 'm going to be as annoyed with them as I
           | am with many of my other service providers (cell, cable, ISP)
        
         | Mindwipe wrote:
         | > This is yet another category of business where I think they'd
         | be far better off being private, so in theory there isn't
         | constant pressure to continue increasing revenue.
         | 
         | Netflix has borrowed billions (and billions) of dollars to get
         | where they are. As a private entity they've gone bust seven or
         | eight years ago.
         | 
         | Netflix priced themselves artificially low to grow, based on
         | debt. That set unrealistic consumer expectations and they might
         | have to face the consequences of that eventually, but Netflix's
         | terms literally always said that accounts could only be shared
         | with people living in the same household as you.
        
           | tw04 wrote:
           | >Netflix has borrowed billions (and billions) of dollars to
           | get where they are. As a private entity they've gone bust
           | seven or eight years ago.
           | 
           | Netflix has been profitable since at least 2005... they may
           | not have grown as quickly, but I'd need some data to back up
           | the claim they'd be bankrupt without billions in investment.
           | 
           | https://www.macrotrends.net/stocks/charts/NFLX/netflix/gross.
           | ..
           | 
           | >but Netflix's terms literally always said that accounts
           | could only be shared with people living in the same household
           | as you.
           | 
           | I never said anything to the contrary. But it's no secret to
           | netflix or anyone else that account sharing happens. This
           | wouldn't be a news story otherwise. It also doesn't change
           | the fact it's customer hostile and clearly an attempt to
           | increase revenue.
        
             | Mindwipe wrote:
             | > Netflix has been profitable since at least 2005..
             | 
             | Only because you're allowed to not count issuing junk bonds
             | towards your profitability. Netflix only started having
             | cash positive quarters this year, and has fifteen billion
             | dollars in debt, generally going up by four billion dollars
             | a year.
             | 
             | Netflix literally could not have afforded the interest on
             | those junk bonds as a private company. It was only able to
             | borrow so cheaply on the promise of it's growth.
             | 
             | (And this year is unusually friendly to them due to Covid,
             | I do not think they are suddenly actually profitable, they
             | just didn't spend nearly as much as normal.)
        
             | whatok wrote:
             | Netflix would not remotely resemble its current form and
             | likely would have been acquired years ago if they did not
             | pivot to their own content. Switching to their own content
             | required and still requires huge amounts of money; est.
             | 17bn last year[0]. Additionally, the gross profit number is
             | a flawed number for many reasons; try looking at operating
             | or net income or anything farther down the income statement
             | from basic revenue. Netflix has no option but to finance
             | content spend with debt as they do not generate enough FCF
             | to cover content spend and will quickly fall behind
             | competitors if they don't.
             | 
             | [0] https://www.pcmag.com/news/netflix-will-probably-
             | spend-19-bi...
        
               | tw04 wrote:
               | >Netflix would not remotely resemble its current form and
               | likely would have been acquired years ago if they did not
               | pivot to their own content.
               | 
               | You can't acquire a private company unless they're
               | willing to sell.
               | 
               | >Switching to their own content required and still
               | requires huge amounts of money; est. 17bn last year[0].
               | 
               | I don't follow your point? Private companies can take a
               | loan just as easily as public. If they were unable to
               | attain the financing they wanted, they'd still have
               | plenty of their own content, just not as much.
               | 
               | >Additionally, the gross profit number is a flawed number
               | for many reasons; try looking at operating or net income
               | or anything farther down the income statement from basic
               | revenue. Netflix has no option but to finance content
               | spend with debt as they do not generate enough FCF to
               | cover content spend and will quickly fall behind
               | competitors if they don't.
               | 
               | I'd suggest you do the same. Their cash balance increased
               | from $5 billion to $8 billion last year. They took out
               | "debt" to finance their movies because money is cheap
               | right now. Nothing they've done required them being a
               | public company, and nothing you've shown makes me believe
               | they couldn't be in exactly the same position they
               | currently are as a private company. They didn't even
               | start borrowing money of significance until 2012, I still
               | don't believe for a second they'd be "bankrupt" as a a
               | private company.
               | 
               | https://stockanalysis.com/stocks/nflx/financials/balance-
               | she...
        
               | whatok wrote:
               | > I don't follow your point? Private companies can take a
               | loan just as easily as public. If they were unable to
               | attain the financing they wanted, they'd still have
               | plenty of their own content, just not as much.
               | 
               | Private companies face a higher cost of capital than
               | equivalent public companies and are unable to borrow as
               | much money as public companies are able to. This is basic
               | finance 101 stuff. Without debt financing, they would not
               | have been able to begin their pivot when they needed to.
               | Netflix is able to borrow at much lower rates than a
               | company with the same financials solely because they are
               | a large public company. Google "equity cushion" if you're
               | unfamiliar with the term.
               | 
               | > I'd suggest you do the same. Their cash balance
               | increased from $5 billion to $8 billion last year. They
               | took out "debt" to finance their movies because money is
               | cheap right now. Nothing they've done required them being
               | a public company, and nothing you've shown makes me
               | believe they couldn't be in exactly the same position
               | they currently are as a private company.
               | 
               | Yes, Netflix is doing much better financially over the
               | past few years and especially in the past year given the
               | pandemic. I don't see how their cash balance is relevant
               | in the face of content spend 2-3x that much. The initial
               | contention was over content spend and a misleading gross
               | profit number.
               | 
               | >They didn't even start borrowing money of significance
               | until 2012, I still don't believe for a second they'd be
               | "bankrupt" as a a private company.
               | 
               | They started borrowing when they needed to pivot to their
               | own content, had to do so at pretty high rates, and
               | luckily succeeded in their pivot.
               | 
               | Throughout this, I don't see any acknowledgement of where
               | streaming was back then and how competitive the space has
               | become since then. Netflix needs to spend on content or
               | it will get left behind. A smaller Netflix offers no
               | competitive edge right now and a smaller Netflix years
               | ago would have been held hostage by content owners while
               | being unable to have any real control over sub pricing;
               | see poorly handled rate increases years ago.
        
               | tw04 wrote:
               | >Private companies face a higher cost of capital than
               | equivalent public companies and are unable to borrow as
               | much money as public companies are able to. This is basic
               | finance 101 stuff. Without debt financing, they would not
               | have been able to begin their pivot when they needed to.
               | Netflix is able to borrow at much lower rates than a
               | company with the same financials solely because they are
               | a large public company. Google "equity cushion" if you're
               | unfamiliar with the term.
               | 
               | I guess I took a different finance 101 than you did - it
               | was at an accredited university though, so I'm fairly
               | certain they weren't making things up as we went. I've
               | literally never heard of a public company being able to
               | borrow more because they were public. Quite the opposite
               | actually, as a private company with a solid financial
               | track record isn't subject to the whims of shareholders
               | and short-term quarterly-returns based internal
               | investment.
               | 
               | Now if you're pets.com that is burning through cash like
               | it's water in the hopes of making money 20 years down the
               | road... that's a different story. That's also not
               | Netflix.
        
               | jfengel wrote:
               | _Private companies face a higher cost of capital than
               | equivalent public companies_
               | 
               | Why is that? (Sorry, I never took finance 101.) Is it
               | because public companies can more easily put up corporate
               | ownership as collateral for the loan? Or because of the
               | extra scrutiny they get from the SEC?
        
           | kmeisthax wrote:
           | Right, but at the same time, Netflix also prices their
           | product tiers around being able to pay for more simultaneous
           | streams on the same account. Account sharing is literally a
           | selling point for them.
        
             | Mindwipe wrote:
             | Sharing _inside a household_ is.
             | 
             | Again, the t&cs explicitly forbid you account sharing with
             | anyone outside your household.
             | 
             | (As does Spotify's, and Spotify started doing something
             | similar to do this a few years ago.)
        
               | NeutronStar wrote:
               | Ok so, what if I live with you but work in another city I
               | travel to every week, do I not live with you? What if I'm
               | a trucker on the move? What if I'm in the army and
               | getting deployed?
        
               | javagram wrote:
               | In those 3 examples you'd still both file your taxes at
               | the same address and be legally eligible to vote there
               | too.
               | 
               | Seems easily distinguished from the case of independent
               | adults who sleep in different homes every night and have
               | separate addresses on all their tax forms, drivers'
               | license and voting registrations...
        
               | Noted wrote:
               | So is Netflix going to require tax information on
               | everyone in the household? How can they tell the
               | difference from their end I think is one of the questions
               | being presented
        
               | Sohcahtoa82 wrote:
               | Presumably, this person that is on the move is still
               | using the same device no matter where they go. Their
               | login session will be the same, just coming from a
               | different IP.
        
       | lol123456789 wrote:
       | "The easiest way to stop piracy is not by putting antipiracy
       | technology to work. It's by giving those people a service that's
       | better than what they're receiving from the pirates." - Gaben
        
         | Mindwipe wrote:
         | This is the same Gaben who runs a store with a bunch of DRM on
         | it that has a variety of mechanisms to prevent account sharing
         | yeah?
         | 
         | It's a nice soundbite, but even he doesn't believe it.
        
           | Sohcahtoa82 wrote:
           | DRM on its own isn't always necessarily bad.
           | 
           | Gaben's quote on piracy was about 2 1/2 years after the big
           | Spore DRM debacle [0], which affected legitimate customers.
           | I've been using Steam for who knows how long and have never
           | had the DRM be an issue, even after several computer upgrades
           | and motherboard replacements. I just have to log in and I can
           | redownload all my games with no issue at all.
           | 
           | Yes, Steam is DRM, but it's _sane_ DRM.
           | 
           | > has a variety of mechanisms to prevent account sharing
           | yeah?
           | 
           | Well...yeah. You aren't supposed to share accounts.
           | 
           | > It's a nice soundbite, but even he doesn't believe it.
           | 
           | It's not just about DRM. When he talks about it being a
           | "service problem", it's not just about the ability to simply
           | play games. When you buy from Steam, you get automatic
           | updates, cloud saves, community integration (such as the
           | Workshop for installing mods and other user-made content),
           | built-in screenshot management features, and more. If you
           | pirate the game, you get none of that.
           | 
           | [0] https://en.wikipedia.org/wiki/Spore_(2008_video_game)#DRM
           | _co...
        
         | jjk166 wrote:
         | But providing a service people are willing to pay for is so
         | much less lucrative than finding ways to force people to pay
         | for inferior service.
        
       | jenkstom wrote:
       | What is the solution for shared custody of children? I have three
       | kids that spend half their time at their moms. Are their Spotify
       | and Netflix accounts (and mine) going to get shutoff? Is there
       | some sort of appeal process?
        
         | sharkweek wrote:
         | According to the article you can just verify through a code
         | that any devices are yours.
         | 
         | My hunch is this is only going to cull the second layer and
         | beyond of password sharing (people you wouldn't feel
         | comfortable texting and asking for the verification code).
        
           | sitkack wrote:
           | Interesting. Why the warning tho and not just a "please
           | relogin" screen?
        
             | sharkweek wrote:
             | Would assume on that it's because many people probably have
             | the password memorized or written down somewhere as opposed
             | to having to proactively ask someone for the verification
             | code.
        
             | pridkett wrote:
             | "Please Relogin" doesn't give you the message that they're
             | on to what you're doing. I don't assume anything when I'm
             | asked to login again. Guilt can be a powerful motivator for
             | people who share accounts because many of them know that
             | you're not really supposed to do it, but it's been more or
             | less tolerated.
        
       | npwr wrote:
       | This might be the right time to dust off the pirate hats. I share
       | my account with my family and my girlfriend and there is no way
       | they would all subscribe to a new account.
        
       | matbilodeau wrote:
       | Reminds me of something similar that happened in Canada.
       | Satellite boxes were so easy to hack it was more of
       | configuration, cable provider sued for disloyal competition.
       | 
       | https://www.cbc.ca/news/business/bellexpressvu-must-pay-
       | quebecor-137m-for-not-stopping-signal-piracy-1.2987341
       | 
       | Which brings my question : Would a provider who tolerates account
       | sharing be at risk of being sued by competitors over similar?
        
         | donmcronald wrote:
         | That's the first time I've seen someone accuse the satellite
         | providers of tolerating signal piracy. It wasn't THAT easy. The
         | difficulty was in the range of a firmware flash.
         | 
         | It wasn't super reliable either. They used to change / fix
         | things and people with the pirate boxes would end up waiting
         | days or even weeks for the new hack. I can't remember the name
         | of the content protection systems, but IIRC it was an issue /
         | limitation with the actual satellite(s), so it's not like they
         | could flip a switch and fix it. They made huge improvements
         | with the next set of satellites that were put into service.
         | 
         | There was a very brief golden age of satellite piracy when all
         | the FTA stuff was popular, but it didn't last any longer than
         | you'd expect when you consider the logistics of having to deal
         | with a satellite that's in space as one side of the system.
         | 
         | That's crazy.
        
       | cortesoft wrote:
       | The way I see it, the system currently works pretty well. Account
       | sharing isn't totally free for the user.... you only can have a
       | certain number of simultaneous streams, and you will have extra
       | profiles on your account.
       | 
       | If people can afford their own account without sharing, they will
       | do it. If they are sharing an account, it means they are
       | sacrificing some functionality to save money.
        
         | PragmaticPulp wrote:
         | I have a group of friends who share a Netflix login and split
         | the bill.
         | 
         | It took them several months to realize there was a simultaneous
         | streaming limitation because it was so rare for 3 of them to
         | try to watch at the same time.
         | 
         | When they hit it, the third person just watches on their shared
         | Hulu or shared HBO account anyway.
        
       | drivingmenuts wrote:
       | I don't own a TV; I have an iPad. Wonder if that's going to cause
       | problems if I ever get to travel again?
        
         | Sohcahtoa82 wrote:
         | Assuming you never log out, I wouldn't think so. Your iPad may
         | move around, but the login session on your iPad is still the
         | same session.
        
       | chucky wrote:
       | As part of a single person household it feels weird that there is
       | a norm that you are allowed to share logins "within your
       | household". Effectively this means people in the same household
       | are paying a lower price than others - so people living in single
       | households are effectively subsidizing that usage by paying more
       | per person.
        
         | larrik wrote:
         | Are you saying if you have a wife and kid you should pay 3x the
         | price?
        
           | aaronax wrote:
           | It's obviously not something that is going to happen, but
           | it's also not that crazy of an idea. They use more water so
           | you pay for more water. They use more clothing so you pay for
           | more clothing. They use more cellular devices so you pay for
           | more cellular connections. They each want an email address so
           | you pay for more email accounts. They use more digital
           | content so you pay for more digital content.
        
           | chucky wrote:
           | I wouldn't put it like that. I would say that each user using
           | Netflix should pay the same amount. So you pay for yourself,
           | your wife pays for herself, and your kid pays for themselves.
           | 
           | Sure, it's 3 times more than what you pay today. But you are
           | 3 times as many people as I am, so why shouldn't you?
        
         | jjk166 wrote:
         | And three roommates splitting rent pay less than the person who
         | lives in a three bedroom apartment alone.
         | 
         | If it really bothers you, get a few people to pay you a few
         | bucks to be included in your "household" and use your netflix
         | account with you the same way that apartment owner sublets the
         | extra rooms.
        
           | chucky wrote:
           | >If it really bothers you, get a few people to pay you a few
           | bucks to be included in your "household" and use your netflix
           | account with you the same way that apartment owner sublets
           | the extra rooms.
           | 
           | But I can't do that - this is exactly what the article is
           | saying Netflix is now starting to take action against, and it
           | is already against their TOS.
        
             | jjk166 wrote:
             | You're restricted to sharing with people in your household,
             | but you get to define who is in your household.
        
         | croes wrote:
         | You mean like internet access, telephone and cable tv? Single
         | and multi person households both have pros and cons and this is
         | just a pro for multi person households. The con is you need a
         | more expensive netflix plan or you can't just watch when you
         | want to.
        
         | bidirectional wrote:
         | Almost everything is cheaper for multiple people living as a
         | unit. Wait until you find out people with partners effectively
         | have their rent halved.
        
           | dazc wrote:
           | Except that rents are now at a level that need two people to
           | cover - so that issue is kind of priced in already?
        
           | chucky wrote:
           | Not sure why you are using such a condescending tone, but I
           | do understand how rent and the costs of living work.
           | 
           | The difference is that if I brought another person into my
           | home then yes, we could split the rent, but it would also
           | halve the amount of living space per person.
        
         | cortesoft wrote:
         | Do you expect my wife to turn away from the TV when I am
         | watching Netflix?
         | 
         | Each tier has a number of simultaneous streams allowed. If you
         | want multiple people to be able to stream at once you pay more,
         | and if you are streaming one at a time on the same device, you
         | really think each person should have their own account?
        
           | chucky wrote:
           | > Do you expect my wife to turn away from the TV when I am
           | watching Netflix?
           | 
           | No, and I do not expect my friends to turn away when they are
           | visiting my home. This is not at all what I said or meant,
           | and I think you know that.
           | 
           | > Each tier has a number of simultaneous streams allowed. If
           | you want multiple people to be able to stream at once you pay
           | more, and if you are streaming one at a time on the same
           | device, you really think each person should have their own
           | account?
           | 
           | There are really two things here. Yes, I am aware Netflix has
           | a model where you can pay to have multiple streams ongoing at
           | the same time. That's the model I am questioning, because
           | obviously one person can only watch one stream, so this can
           | only be used by different people in a household.
           | 
           | As for the other part of your question, yes, that is exactly
           | what I think. Each person should pay equally for their own
           | account. Why am I allowed to share my 2 streams with a
           | partner in the next room, but not with a partner in
           | Australia? What is the difference between the two?
        
             | cortesoft wrote:
             | I am guessing the reason is twofold.
             | 
             | One, they know it is unlikely a family would pay for more
             | than one account while living in the same house, but they
             | might get a few extra bucks for the family upgrading to a
             | multiple streams subscription.
             | 
             | Two, they probably have data that a shared account in the
             | same house does less simultaneous streaming on average than
             | a shared account in multiple houses.
        
         | rafael09ed wrote:
         | For products with a flat rate, the people who use it less are
         | subsidizing it for people who use it more too. Would you say
         | there is a problem with that?
        
           | dazc wrote:
           | I share my account with my dad, who does not live with me.
           | He's been self-isolating for almost a full year and has
           | redefined 'binge-watching' to a whole new level.
           | 
           | I rarely watch Netflix since it seems mostly series stretched
           | across multiple episodes despite having a story that wouldn't
           | justify a comic strip.
           | 
           | So, yes, I am subsidising him consuming stuff that Netflix
           | would have to pay me to watch.
        
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