Netflix denied that it is trying to get people to stop sharing accounts with friends and family. The question was posed directly to CEO Reed Hastings during an earnings call this week, and Hastings explained that the company is not attempting to "lock up" customers who share accounts with others.

Hastings said, "We test a lot of things, but we don't roll out something that feels like turning a screw. It has to be something that feels reasonable to the consumer."

Greg Peters, COO of Netflix, added. First of all, we recognize that our members are in different positions and have different needs than we do as an entertainment service, and we want to make sure that we're meeting those needs in a way that makes sense to them." And we are pursuing a flexible approach to provide plans with the right features and price points to meet those broader needs."

Peters added, "While doing so, we also want to ensure that those who are using and accessing their Netflix accounts are authorized to do so."

If Netflix's goal is to prevent unauthorized account access, it might be worth taking a look at how they worded their original message. If you are not living with the account owner, you need your own account to continue watching. This is not an error message for suspected unauthorized users.

So is it possible that Netflix saw the outcry over this, especially after raising prices and moving to profit, and decided to back off its plan to stop account sharing? Yes, it certainly is. Whatever the truth behind the move, it is clear that customers feel they are paying for several simultaneous streams, not simply for one household to use the service.

Netflix was also asked to explain why its subscriber growth slowed considerably this quarter. As expected, the pandemic has had a significant impact: the company added 40 million users in 2020 because people wanted something to do on their lunch hour while they were locked up or working from home. The company now has 210 million subscribers, so it is not surprising that there has been a slowdown in growth.

The company is indeed doing well, but now faces an uphill battle. With so many people already subscribing, it will be quite difficult to attract 500 million customers. Also, compared to services like Disney+, which offers four simultaneous streams for $7.99/month, Netflix appears to be less valuable; Netflix charges $17.99 for the same content and will not let subscribers access 4K content unless they pay top price. No. [Several services are competing for the monthly fee, including Apple TV Plus, Peacock, Disney Plus, HBO Max, and Paramount Plus. The battle to open wallets is heating up.