Most Families have a single Netflix subscription. Whether it’s a family of 3, or 13, there will be only 1 monthly payment charged to 1 member of the family.
And when the kids finally move out they will get their own Netflix subscriptions, right?
Well, at least not that fast. They will continue to use their parents forever, until one day, in the slight chance that their parents should cancel theirs, or a tragedy happens, they would buy their own subscription.
But it’s not just family sharing…
Twenty-four million people use a Netflix account that they don’t pay for according to an estimate from Cordcutting.com. That’s a lot of people. If an estimated 24 million people were using your product for free, wouldn’t you get a little upset?” – HowToGeek.com
So Why Doesn’t Netflix Mind?
We all know that Netflix has been wooing these kids and customers to their service for a looooong time. So they know a percentage of their audience, or someone in the family will always have to have at least 1 subscription.
Essentially, they’ve created their own market demand in their favourite customer avatar (The TV Watcher). An audience with hundreds of millions and growing.
But aren’t they losing money with only one subscription per family?
Let’s put it this way,
With an average US family size of 3.15 persons, (I know, statistics are weird) to make things easier we will say the US population size is 315 million, and we will say they all watch TV.
With one third of them then paying Netflix a monthly subscription (1 member per family), and the other 2 waiting to pay for it themselves…
…They have capitalized on, and cornered their market quite well if you ask me!
Still, it’s not just Netflix. A myriad of other subscription based and SaaS (software-as-a-service) companies are in no rush to crack down on password sharing any time soon. As we see this isn’t a new trick in the book either. Many grocers operate and sell certain products at a loss to keep customers happy, all the while making their money off the subscription, like Costco Wholesale.
In other words, punishing account sharers just isn’t worth the risk of losing market-share.
THE BLOCK BARD
Founder | CEO
WARNING: You Are NOT Ready to Advertise to Your Audience Until You’ve Downloaded our FREE 1-Page Dream Customer System Called the “Plan-0 Market Method”
This is the First sheet we make every Client fill-out before working with us… just hit GET IT NOW
The Ads That Pay You Back ©
~ Hi there!
If you see anything wrong with this post, be it typos, to offensive material, you can DM us at the email below and we’ll try to make it right 🙂
We love finding new, excellent sales professionals to feature in our blog. If you hold a sales, marketing, revenue-oriented title, or even business & growth, you are welcome to submit a pitch — or get the conversation going on topic ideas.
But before you submit, please make sure you read our B&G Content Guidelines We know they look long, but they actually take only a few minutes to read. If you’d like us to spend our time working with you, please invest a little of yours in reading those guidelines.
Once you’ve read the guidelines, send your pitch to email@example.com.
We often find great ideas in unexpected places. The next article published on THE BLOCK BARD ‘Business & Growth’ could be yours!
We Love Your Support!
If you enjoyed this post, you can support a small business like us by liking our page and sharing below!