Saturday, 22nd September, 2018

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Netflix to charge royalty from telecom companies as millions call each other to get username and password

11, Sep 2018 By Santosh Pradhan

Mumbai: India, with its billions of consumers, is a massive market for streaming services like Netflix, Amazon Prime, and others, all of which rely on their subscription packages to fund their content and maintain their profits. But recent trends show that people in India share Netflix accounts to bring down the cost/user. Like a family of 4 will have one Netflix account. Friends take a subscription for one account and then share it with 5 others to reduce the cost. Then there is a group where each member takes up a subscription of a different digital medium and then share it with the people in the group.

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People calling each other to get username and password is the coolest thing in India. Shwetank Srivastava, a Mumbai based IT employee has in fact taken username and passwords from 20 different friends. And he intends to do the same for the next 2-3 years. There are many like Shwetank in Mumbai, you can do the math and the resulting number for India would shock you. We are talking about millions. And getting a username and password from someone is such an urgent thing that people don’t use Whatsapp to get it, they pick up the phone and call their friends. The revenue of all telecom companies is seeing a major spike in the last 2-3 months after the release of Sacred Games.

Netflix business team knows for sure that it would be difficult to break the ‘Jugaad’ making tendency of an Indian viewer, so it’s better to focus on indirect sources of revenue, the first step of which includes charging a royalty from the telecom companies who are benefitting a lot due to the Netflix revolution.