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Netflix will crack down on password sharing this summer

Netflix’s long-awaited crackdown on password sharing is coming soon to the U.S., the streamer said on Tuesday.
Netflix originally planned to roll out “paid sharing” in the States during the first quarter of 2023. However, Netflix now says it’ll start rolling out the change — an update designed to convert account-sharers into paying users — a little later, on or before June 30.
This move is not limited to the U.S., either. “We are planning on a broad rollout, including in the US, in Q2,” the streamer said in its first-quarter 2023 earnings report. Alongside this announcement, Netflix also bid farewell to its 25-year-old mail-order DVD business. RIP.
Netflix’s quest to boost revenues by curbing password sharing kicked off earlier this year in Canada, New Zealand, Portugal and Spain. In these countries, Netflix requires paying users to set a “primary location” for their account. Going forward, if someone they don’t live with uses their account, Netflix alerts them to “buy an extra member.” Netflix says it will allow up to two extra members per account, and its fee per extra user varies by country. For example, it’s an additional CAD $7.99 in Canada and €3.99 in Portugal.
Speaking of revenue, Netflix fell short of analysts’ expectations for its first quarter of the year. The company said it brought in $8.16 billion during Q1 2023, while Wall Street anticipated a slightly higher figure — $8.18 billion. However, the firm reported higher-than-expected earnings of $2.88 per share in Q1; analysts had anticipated $2.86 per share.
Earlier in 2023, Netflix breezily summarized its paid-sharing update as a chance to clarify “confusion about when and how you can share Netflix,” but make no mistake, this is a crackdown. On Tuesday, Netflix played a similar tune, telling investors that the change “will result in a better outcome for both our members and our business.”
“We see a cancel reaction in each market when we announce the news, which impacts near-term member growth,” Netflix said. “But as borrowers start to activate their own accounts and existing members add ‘extra member’ accounts, we see increased acquisition and revenue.”
Netflix ended regular trading with its stock price at $333.70 per share. After hours, the company’s individual share price slipped below $307, before rebounding to about $330 (as of 2:58 p.m. PT).

Netflix kisses mail-order DVDs goodbye

Netflix will crack down on password sharing this summer by Harri Weber originally published on TechCrunch
Netflix will crack down on password sharing this summer

HBO Max comes back to Prime Video Channels

Today, Warner Bros. Discovery and Amazon announced that HBO Max is back on Prime Video Channels in the United States after it left as an Amazon offering in 2021.
Prime subscribers can sign up for HBO Max for $14.99 per month via the Prime Video app or at amazon.com/channels/hbomax. The channel can be canceled at any time.
The companies also noted in an announcement that customers would have access to the upcoming “enhanced” streaming service when it launches in 2023, which will combine HBO Max and Discovery+ content.
“Now, with the addition of HBO Max again, customers can easily add this subscription and enjoy even more award-winning and fan-favorite entertainment on Prime Video,” said Cem Sibay, vice president of Prime Video, in a statement.
“Warner Bros. Discovery is committed to making HBO Max available to as broad an audience as possible while also advancing our data-driven approach to understanding our customers and best serving their viewing interests. Today, we are thrilled to take an important step forward by announcing that HBO Max is returning to Prime Video Channels,” added Bruce Campbell, chief revenue and strategy officer, Warner Bros. Discovery.

Amazon offers more details about why HBO Max isn’t on Fire TV

HBO Max launched in May 2020 without support for Amazon devices because former WarnerMedia CEO Jason Kilar wanted the streaming service to be available as a dedicated app on Fire TV devices rather than available through Prime Video Channels. A dedicated app gives Warner access to all customer data and subscription revenue as opposed to sharing it with Amazon. Despite this, however, HBO Max became available as a Prime Video Channel months later, likely so more consumers would subscribe to the service.
The streaming service then left Prime Video in 2021 due to the former parent company, AT&T, failing to reach an agreement to extend distribution. WarnerMedia lost 1.8 million subscribers that quarter due to no longer being available on Prime.
Aside from WBD CEO David Zaslav’s questionable content strategy, HBO Max’s return to Prime Video Channels is a smart move for the company. WBD fell short last quarter, missing Wall Street expectations after many titles disappeared from HBO Max.
While the reasoning behind the latest deal wasn’t disclosed, we guess that Zaslav wanted to strike a new deal with Amazon in order to gain new subscribers for the upcoming combined streaming service, which is rumored to be called “Max.”

Warner Bros. Discovery falls short of expectations in Q3 despite success of ‘Game of Thrones’ spinoff

HBO Max comes back to Prime Video Channels by Lauren Forristal originally published on TechCrunch
HBO Max comes back to Prime Video Channels

Roku drops ~19% as it braces for a bumpy fourth quarter

As advertisers pull back on spending and supply chain disruptions persist, investors have braced themselves for an unpleasant quarter for Roku. And investors are probably right to be worried.
Roku released its fiscal third-quarter earnings results on Wednesday, revealing that it is still experiencing slow growth in revenue in a continuously challenging environment. The company also warned investors of a weak fourth quarter, telling shareholders it expects total net revenue of about $800 million, or a 7.5% decline year over year. Roku shares dropped nearly 19% in after-hours trading once investors saw the fourth-quarter guidance.
“As we enter the holiday season, we expect the macro environment to further pressure consumer discretionary spend and degrade advertising budgets, especially in the TV scatter market. We expect these conditions to be temporary, but it is difficult to predict when they will stabilize or rebound. We, therefore, anticipate Q4 Player revenue and Platform revenue to be lower year over year,” the company wrote in its letter to shareholders.
And while Roku reported a total net revenue that beat expectations, the results are still much lower than in the past. Roku noted that its total revenue grew 12% year over year to $761 million, above its own expectation of $700 million. Analysts predicted Roku’s total revenue to reach $696 million this quarter.
“Platform revenue grew 15% year over year, which was lower than our historical growth rates but positive given the difficult macro environment. Advertising spend on our platform continues to grow more slowly than our beginning-of-year forecast due to current weakness in the overall TV ad market, and the ad scatter market in particular,” the company said.

Roku points finger at advertising slowdown for missing the mark on quarterly results

Roku missed revenue expectations last quarter and reported a total net revenue of $764 million, which was $41 million less than Wall Street’s expectations. The company blamed the slowdown in TV ad spending for missing the mark.
Meanwhile, the company also reported a net addition of 2.3 million incremental active accounts in Q3, bringing the total to 65.4 million, up from 61.3 million active accounts in the second quarter. Roku also had total streaming hours of 21.9 billion, up 1.1 billion from last quarter.
Its free streaming service, The Roku Channel, saw a jump in streaming hours of 90% year-over-year.
Roku continues to invest in The Roku Channel. Just this past month, the company launched the streaming service in Mexico, which marked a significant move for the service. Previously, The Roku Channel was only available in the U.S., the U.K. and Canada.
The Roku Channel also launched 14 new linear channels through its Live TV Guide and added Paramount+ as a new premium subscription option.
Roku tries to be smart(er)
Roku made a bold move last month by stepping into the connected home space with the launch of various smart home devices. The Roku Smart Home lineup includes security cameras, video doorbells, smart lights and voice-enabled smart plugs.
With Google and Amazon already in the smart home market, it’s likely Roku doesn’t anticipate becoming the first choice for consumers. Still, it makes sense for the company to monetize the smart home experience to the many consumers that already have Roku smart TVs in their homes.
During a conference call with reporters, Roku chief financial officer Steve Louden said: “Expanding into the smart home ecosystem is a natural extension for Roku. Obviously, we’re a leading TV streaming platform, and smart TV is usually at the center of someone’s smart household. It’s a good extension to leverage our existing 65 million active accounts.”
The company added in its letter that it’s still “early days,” but Roku has the “necessary technology and expertise in hardware, software, and connectivity to deliver a smart home ecosystem that is simple, powerful, and delightful.”
Roku also recently launched the 2022 version of the Roku Express streaming player, a Roku Wireless Bass, as well as its software update, Roku OS 11.5, which includes new features like a universal watch list, a “continue watching” feature and a discovery hub that features short-form content.

Roku dives into smart home market with security cameras, video doorbells, smart lights and more

Roku drops ~19% as it braces for a bumpy fourth quarter by Lauren Forristal originally published on TechCrunch
Roku drops ~19% as it braces for a bumpy fourth quarter

Tinder to kill virtual currency, metaverse plans amid Match Group earnings loss; Tinder loses its CEO

Dating giant Match Group announced a series of changes to Tinder’s management team alongside the announcement of disappointing second-quarter earnings on Tuesday. Notably, Tinder CEO Renate Nyborg will be departing the company after less than a year in the top job. Match Group is also killing Tinder’s plans to adopt new technology, like virtual currencies and metaverse-based dating.
In a shareholder letter, Match Group CEO Bernard Kim expressed frustration with Tinder’s current performance, noting the popular dating app has not been able to realize its typical monetization success over the past few quarters and is failing to meet the company’s original expectations for revenue growth for the latter half of 2022.
Kim chalked up Tinder’s troubles to “disappointing execution on several optimizations and new product initiatives,” but added that Tinder’s product execution and velocity could still be improved.
Alongside the departure of Nyborg, Tinder will have a reorganized management team that also includes:
Faye Iosotaluno, formerly Match Group’s chief strategy officer, as Tinder’s COO
Mark van Ryswyk, as Tinder’s chief product officer. Ryswyk is an experienced gaming executive who joined the company in June.
Melissa Hobley, formerly OkCupid’s CMO, as Tinder’s chief marketing officer
Tom Jacques, as Tinder’s chief technology officer. An 11-year Match Group veteran, he has been Tinder’s CTO for the last five years.
Advisor Amarnath Thombre. The current CEO of Match Group Americas and 15-year Match Group veteran will advise the Tinder management team on product roadmap and growth.
Kim said he will oversee the team while Tinder searches for a permanent CEO.
Reading between the lines, there was also a hint that the younger generation of users may have lost its appetite for dating apps like Tinder — a culture shift which can’t just be chalked up to lingering pandemic impacts. The letter notes that people have moved past COVID lockdowns and re-entered “a more normal way of life,” but their willingness to try online dating apps for the first time hasn’t returned to pre-pandemic levels.
Instead, Match Group reports that its highest engagement is now coming from existing users.
As part of Tinder’s revamp, its “dating metaverse” ambitions have been dramatically scaled back. The company had been planning to leverage its Hyperconnect acquisition to create a new form of online dating in a virtual environment, but those ideas are on pause as Match Group now has to address broader issues.
“…Given uncertainty about the ultimate contours of the metaverse and what will or won’t work, as well as the more challenging operating environment, I’ve instructed the Hyperconnect team to iterate but not invest heavily in metaverse at this time,” wrote Kim. “We’ll continue to evaluate this space carefully, and we will consider moving forward at the appropriate time when we have more clarity on the overall opportunity and feel we have a service that is well-positioned to succeed.”
Also on the chopping block was virtual currency, which Match Group was experimenting with as Tinder Coins. (While Match Group hadn’t gotten so far as to announce blockchain integrations for the coins, the virtual currency’s role in its broader metaverse plans suggested crypto could be part of its long-term roadmap.)
“After seeing mixed results from testing Tinder Coins, we’ve decided to take a step back and re-examine that initiative so that it can more effectively contribute to Tinder’s revenue,” said Kim. “We also intend to do more thinking about virtual goods to ensure that they can be a real driver for Tinder’s next leg of growth and help us unlock the untapped power users on the platform,” he added.
The company says it’s still planning to develop features to make Tinder more appealing to women, including a subscription-based package that will provide “curated recommendations” as well as features designed to get friends involved in introductions. Across other products, it will also look to new features, like livestreaming video, to drive adoption.
Overall, Match posted Q2 2022 revenue of $795 million, up 12% year-over-year, but below average Wall Street estimates of $804.22 million. It also posted a loss of $31.86 million, or 11 cents per share, versus 46 cents in the year-ago quarter. Analysts were expecting earnings of 57 cents per share. Match said its operating loss was $10 million, impacted by a $217 million write-down of intangibles related to lower financial outlooks for its Azar and Hakuna apps from Hyperconnect.
Match Group paying users were up 10% year-over-year to 16.4 million. Tinder direct revenue grew 13% from the prior quarters, driven by 14% growth to 10.9 million paying users.
Image Credits: Match Group
Estimates for the quarter ahead weren’t good either, with Match Group forecasting flat Q3 growth to $790 million to $800 million in revenue, below estimates of $883 million. Tinder revenue growth is expected to be in the “mid single digits.”
Shares dropped more than 20% in after-hours trading on the news.
Updated 8/2/22, 6:00 pm ET to clarify Tinder had not formally announced blockchain integrations for Tinder’s virtual currency. 
Tinder to kill virtual currency, metaverse plans amid Match Group earnings loss; Tinder loses its CEO

PayPal details its digital wallet plans for 2021, including crypto, Honey integration and more

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PayPal this week laid out its vision for the future of its digital wallet platform and its PayPal and Venmo apps. During its third-quarter earnings call on Monday, the company said it plans to roll out substantial changes to its mobile apps over the next year to integrate a range of new features, including enhanced direct deposit, check cashing, budgeting tools, bill pay, crypto support, subscription management, buy now/pay later functionality and all of Honey’s shopping tools.
While PayPal had spoken in the past about bringing Honey’s capabilities into PayPal, CEO Dan Schulman detailed the integrations PayPal has in store for the deal-finding platform it bought last year for $4 billion, as well as a timetable for both this and the other app updates it has in store.
The Honey acquisition had brought 17 million monthly active users to PayPal. These users turned to Honey’s browser extension and mobile app to find the best savings on items they want to buy, track prices and more.

But today, the Honey experience still remains separate from PayPal itself. That’s something the company wants to change next year.
According to Schulman, the company’s apps will be updated to include Honey’s shopping tools, like its Wish List feature that allows you to track items you want to buy, price monitoring tools that alert you to savings and price drops, plus its deals, coupons and rewards. These tools will become part of PayPal’s checkout solution itself.
That means the company will be able to track the customer from the initial deal-hunting phase where they’re indicating their interest in a certain product, target them with savings and offers, then guide them through its checkout experience all in one place.
PayPal will also provide “anonymous demand data” to merchants based on consumer engagement with Honey’s tools to help them drive sales, the company said.
What’s more, PayPal put timeline on the Honey integrations and the other updates it plans to roll out over the course of the next year.
Bill Pay will start to roll out this month, PayPal said, with a large redesign of the digital wallet experience expected for the first half of 2021. Much of the new functionality will be arriving in the second quarter and the second half of the year, with a goal of having the majority of the changes rolled out by the end of next year.
This also includes PayPal’s plans for cryptocurrencies, announced at the end of October. The company aims to support Bitcoin, Ethereum, Bitcoin Cash and Litecoin at first, initially in the U.S.

PayPal to let you buy and sell cryptocurrencies in the US

Speaking to investors during the earnings call, Schulman also noted when PayPal plans to bring crypto to more users and geographies. He said the ability to buy, sell and hold cryptocurrencies will first arrive in the U.S., then will roll out to international markets and the Venmo app in the first half of next year. (Currently, PayPal is offering U.S. users to join a waitlist for the new crypto features in-app).

Image Credits: PayPal

This change will allow PayPal’s users to shop using cryptocurrencies across the company’s 28 million merchants without requiring additional integrations on merchants’ part. The company explained this is due to how it will handle the settlement process, where users will be able to instantaneously transfer crypto into fiat currency at a set rate when checking out with PayPal merchants.
“This solution will not involve any additional integrations, volatility risk or incremental transaction fees for either consumers or merchants, and will fundamentally bolster the utility of cryptocurrencies,” said Schulman. “This is just the beginning of the opportunities we see as we work hand in hand with regulators to accept new forms of digital currencies,” he added.
PayPal also recently joined the “buy now, pay later” race with its new “Pay in 4” installment program that lets consumers split purchases into four payments. This debuted in France ahead of its late August U.S. launch and has since rolled out to the U.K. (as Pay in 3). This too, will become more integrated into the company’s apps in the months ahead.

PayPal joins the ‘buy now, pay later’ race with new ‘Pay in 4’ installment program

Venmo — which the company expects to reach $900 million in revenues next year — will see the expansion of business profiles, and will gain crypto capabilities, more basic financial tools and shopping tools, as well as a revamp of the “Pay with Venmo” checkout experience.
Schulman referred to the company’s plans to overhaul its Venmo and PayPal apps as a “fundamental transformation,” due to how much new functionality they will include as the changes roll out over the next year as well as the new user experience — basically, a redesign — that will allow people to move easily from one experience to the next instead of having to change apps or use a desktop browser, for example.
PayPal’s earnings hadn’t excited Wall Street investors this week, sending the stock down on its lack of 2021 guidance. But the year ahead for PayPal’s digital wallet apps looks to be an interesting one.

PayPal’s earnings don’t excite Wall Street, but bring good news for consumer fintech

 

PayPal details its digital wallet plans for 2021, including crypto, Honey integration and more