Janko Roettgers at NewTeeVee noticed an interesting bit of information on the Netflix Investor Relations FAQ about personal accounts. Netflix shut down the mutli-user account profiles feature last year and is testing new Facebook integration, so it'll be interesting to see how they handle multiple users on each account.
It's rare for Netflix to share information about an upcoming feature, so I'm including the entire post from the Netflix IR FAQ:
When our focus was primarily DVD rental, we talked about our opportunity in terms of households, in particular the number of households with broadband access, which is more than 70 million households. Another way to view our potential opportunity is to consider the number of households that subscribe to home entertainment, which includes cable and satellite subscribers, a market estimated at about $68 billion in annual revenue. In either case, we were describing a very big potential market, giving us a lot of room to grow.
More recently, as streaming has become central to our business, we believe there may be an opportunity to change our focus from a household relationship to an individual relationship, since streaming is viewed on personal devices, such as phones, tablets, and laptops, as well as on shared large screen televisions. As we think about this shift from a household to a personal relationship, we are starting to think internally that our opportunity could be viewed as the number of mobile phone subscribers, a group that both invests in electronic content and can afford $7.99 for home entertainment. Needless to say, that is a large opportunity.
The evolution toward individual memberships will take time, and we are still thinking about how to best do it. One option would be to allow an account to add additional concurrent streams (using the analogy of our DVD business, it would be like choosing a higher-priced plan that allows a subscriber to have more DVDs at home). Our $7.99-per-month plan is for one stream at a time, and later this year we expect to be able to offer consumers some account options to watch multiple simultaneous streams. Or it could be that there is a price point that would encourage multiple accounts in one household. In either case, our long-term goal is to evolve the Netflix service so that it feels more natural to have a personal account. We will also be working on broader Facebook integration which we hope will further the notion of personal accounts.
How would you like Netflix to price and implement personal accounts?