Reasonable Product Deep Dive: A Product & UX look into pricing - Netflix removes account sharing
Netflix has been historically very tolerant of a practice called “accounts sharing” practices, aka paying customers sharing their usernames and password with other users.
Good times are now over, and Netflix believes it’s now time that each user starts to pay his own subscriptions. This change has been recently communicated by the company and has been largely relayed by the press.
What is the impact of this move on the product, on the user experience, and on the economics? Does it actually make as sense as it may look at a first glance?
Was this change really thought off, or just rushed? Time will tell. In this podcast, we will see why this is much more than "enforcing" a legit usage question. And why it comes with huge implications on prices, "free to paid" conversion journey, customer segmentation, and UX.
In this podcast, I will try to go through the different implications of this move, based on my experience in the subscription businesses. To be clear, I do respect and share Netflix's willingness to monetize its users a lot. At the same time, I will argue that the path they’re taking seems somehow inspired by the rush and could have unexpected consequences on their own product positioning.
As a final note to product management practitioners: there is still too much attention spent on frameworks, delivery, and agile topics. Pricing is a core element of product that too often gets neglected.
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