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.
The survey was conducted online by Parks Associates on behalf of Coldwell Banker within the United States from 6-9 June, 2016 through a third party via its omnibus product. The survey was conducted am...
This survey was conducted online by Parks Associates on behalf of the Coldwell Banker brand within the United States between June 6-9, 2016 through a third party via its omnibus product. The survey wa...
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