An article by MarketWatch includes comments from Goldman Sachs Analyst Heath Terry, who suggests the possible intent of Netflix behind targeting the HD plan. “We believe a targeted price change like this is designed to reduce excessive password sharing by incentivizing users to switch to the 1-screen plan,” Terry said.
The price of both single screen streaming plans and the two-screen HD plan is the same at $7.99. An important question is whether password sharing outside the home is really a piracy threat to major companies like Netflix.
The answer to this is no, but this does not mean that it is not prevalent, the report says. In a study earlier this year, Parks Associates found that nearly 57% of the U.S. households access an over-the-top video account, which could be Netflix, Hulu or HBO Go, but 11% of Netflix, 10% of Hulu Plus and 5% of Amazon Prime Instant Video subscribers make use of an account for which payments are made by someone else.
From the article "Netflix Password Sharing: Is It Piracy?" by Aman Jain.
Those who prefer streaming video-on-demand aren’t shy about sharing passwords. About 6 percent of U.S. broadband households use an over-the-top video service paid by someone living outside of the hous...
On the other hand, achieving such a feat may not be as easy it seems. Data published by Parks Associates highlights that during the past 12 months, approximately 50% of Hulu’s subscribers have not opt...
The new Hulu service is an attempt by its traditional entertainment company owners to secure their footing in television’s digital future, where streaming has become the norm and competition from deep...
Parks Associates announced that the churn rate for OTT video services is 19% of US broadband households, indicating roughly one in five households have cancelled an OTT service in the past 12 months....
