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.
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Netflix is also preparing to crackdown on illegal account sharing via new artificial intelligence software, which will be able to analyze which users are logged in and then flag shared accounts. Th...
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