These are hectic times on Netflix, with a sea of background that substantially affects the subscribers of the platform. After years of absolute leadership and what seemed like a walk in the clouds, the financial results presented by the company at the beginning of last year were a jug of cold water that had, as a main consequence, the company began to rethink its numbers, to be more exact, those that govern its relationship with subscribers, that is, its rates and limitations.
Seemed like a risky move Raise the rates precisely when the lowest rates are occurring and, in addition, the prices of all your competition are more competitive than yours, but despite this, the first front they decided to open was to start monetizing the shared accounts. It is true, strictly speaking, that the conditions set by Netflix in this regard have always been the same, one home, one subscription, but it would be cynical to deny that a good part of its growth in previous years was due to the extreme laxity on the part of the company at this point.
The company began its tests in this regard about a year ago in Chile, Costa Rica and Peru, later extended it to the Dominican Republic, Argentina, Honduras, Guatemala and El Salvador and just over a week ago, in a move that It had already been advanced, the hack to shared accounts reached Spain, among other countries. The additional price for each non-cohabiting profile is 5.99 euros, and here we will tell you how to select the main location and add an “external” profile.
Until now we had many doubts about how the additional payment model had fitted in Latin America and, of course, how these will be transferred to other markets, mainly ours. There are some very interesting predictions in this regard, like the one you can see in the image below, but it is still too early to tell. Of course, if we take into account that the Latin American experience must have been a good lesson for the company, everything points to the fact that the numbers do not add up.
So much so that if we now review the prices, we will see that there has been a very striking movement, since Netflix has substantially reduced monthly fees in many Latin American countries. The percentages of price decrease are not the same, but in all cases they are remarkable. This is how the Netflix rates have been in those countries after this adjustment:
Bolivia, Cuba, Nicaragua, Paraguay and Venezuela
- Basic Plan: $3.99 (was $7.99)
- Standard Plan: $5.99 (was $10.99)
- Premium Plan: $7.99 (was $13.99)
Panama
- Basic Plan: $4.99 (was $8.99)
- Standard Plan: $8.99 (was $12.99)
- Premium Plan: $12.99 (was $15.99)
Ecuador, El Salvador, Guatemala, Honduras and the Dominican Republic
- Basic Plan: $4.99 (was $7.99)
- Standard Plan: $7.99 (was $10.99)
- Premium Plan: $10.99 (was $13.99)
As you can see, some subscriptions have fallen by up to 50%, with drops ranging from three to six dollars.
How should we interpret this? Well, I understand that precisely in the key of what I indicated at the beginning, that is, in the context of stronger competition than ever and, moreover, cheaper. And although at the moment this price drop only applies to Latin America, we already saw last year that this is the market chosen by the company to carry out this type of test, so it makes a lot of sense to expect that, at some point, let’s see similar movements in the rest of the world and, especially, in those countries in which the hack of shared subscriptions may already be having a significant cost in the volume of subscribers.
