The password sharing initiative is all part of a new era at Netflix — and a new phase in Hollywood’s transition to streaming. Analyst Michael Nathanson has dubbed it the third act of the Streaming Wars.
In the first phase, Netflix, Hulu and Amazon offered bottomless libraries of shows at a steep discount to cable. In the second phase, traditional media companies spent vast sums of money to sign up customers at below-market rates.
But global demand for new streaming video entertainment has stopped growing, according to Parrot Analytics, a third-party data firm that measures interest in programs using inputs like piracy and social media interactions.
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