Netflix is delaying the implementation of extra fees for Password sharing in the US despite a successful rollout in Canada.
The fees are charged for password sharing across multiple locations, and Netflix had reported “positive” results in Canada, including accelerated revenue growth and more customers. However, despite previously suggesting that the Canadian market was a “reliable predictor” of the US, the company is now delaying the rollout to American consumers by several months.
According to CBC, analysts suggest that this may be due to fear of backlash from US customers. John Buffone, vice president and media industry analyst at Circana, a market research firm, commented, “If you were the company testing something that you know is not necessarily going to be met with a whole bunch of smiley faces from viewers? You’re not going to do that in your largest market, the United States.”
Buffone also suggested that this could be the “greatest potential revenue gain for the company” if the transition is successful. The company had originally planned to begin the US charge by March, but will now start charging US customers before July. Buffone warned that a misstep could cause a tumble in the company’s stock prices.
Vincent Georgie, assistant professor of marketing with the Odette School of Business at the University of Windsor, suggested that the Canadian market “matters less” to Netflix and that the company could afford to experiment with charging Canadians more. Meanwhile, one Canadian customer, Dan Student, cancelled his service due to the extra charge, turning to alternatives such as Amazon Prime and Crave.
