![]() ![]() You’d launch the software on your television or phone and see your crew-Mom and Dad and Caitlin and Buzz, maybe. When Netflix (and all the other streaming services) started encouraging users to set up separate profiles, they created a new kind of group affinity. This segmentation likely also helps sell ads for the cheaper tier of its service. Beyond the marketing benefit, user profiles meant that Netflix could perform data segmentation on its viewership, which in turn allowed the company to target recommendations to help retain subscribers. Sharing an account became characteristic of the Netflix brand, and one with real value to the company. Read: This is what Netflix thinks your family is Even though the terms of service have long said that an account is supposed to be for people who live in one household, Netflix never seemed to mean it. For years, Netflix exploited that sense of intimacy as a marketing strategy, most famously in a tweet its official account posted: “Love is sharing a password.” This pitch came after the phrase Netflix and chill had solidified as a euphemism for casual sex, and Netflix capitalized on the idea that its service might, well, bring people together. That makes sharing it intimate but also clandestine. Worse, the way Netflix is reframing “sharing” seems to imply that you might have been a cheat for ever getting that soft product in the first place the new definition both highlights a feature you probably didn’t think about and scolds you for having taken advantage of it.Ī password is meant to be secret. With this change, Netflix has also attempted a rebrand: People used to talk of “password sharing,” but last year the company started to refer to “ paid sharing.” If you’ve felt confused or even angry about this change, it’s probably because a Netflix account had previously offered a soft product that the company is now retracting. (A Netflix spokesperson didn’t respond to a request for more details.) ![]() subscribers aren’t yet affected by the change, but Netflix has implied that it’s coming everywhere, as the company looks for ways to boost revenue amid a downturn affecting the whole streaming sector. Last year, the company tested the idea in Latin America, and this month it modified the policy and expanded it into Canada, New Zealand, Portugal, and Spain. In recent months, Netflix has started preventing subscribers from sharing an account across multiple physical locations without paying extra. The distinction between hard and soft products helps explain the controversy about changes Netflix is making to its streaming service-along with many other changes in the internet-enabled service economy. But that soft product has a value too: Without it, you’d feel shortchanged. Call this the “soft product.” If you don’t get the hard product, you’ve been swindled. But you receive secondary goods and services as well: the box in which you can transport your burger, complimentary Wi-Fi with your SkyMiles membership, the kinship of watching a show with your family. What do you get when you buy something? The thing, of course-a Big Mac, airline transit to Miami, the right to stream Bridgerton. To hear more audio stories, download the Hark app. ![]()
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