I'm not surprised. The number of people sharing accounts who now need their own was always likely to be greater than the number who were going to cancel. They only had to convert a fraction of the non-subdividing viewers for it to work out in their favour. I think they'll find they have less viewers now, though.
The approach of tacitly allowing account sharing to build viewership then cracking down on it to boost revenue is smart enough as a business strategy. It signals what most of these companies will do when it comes time to really monetise.
I worry for the future of the internet when YouTube and Google really kick off. It's going to be a subscription hellscape (it is already, but it's going to be so much worse).
I don't have a link for it, but I read that YouTube is working on a 3 strikes policy for anyone using AdBlock programs... So after the 3rd warning you're not able to watch anything on YouTube at all...
The approach of tacitly allowing account sharing to build viewership then cracking down on it to boost revenue is smart enough as a business strategy. It signals what most of these companies will do when it comes time to really monetise.
It's less extreme than Hulu's method of going from an all free service to a subscription service. When you think about it from Hulu's perspective there's no way they would make less money and unlike social media sites like Twitter or Facebook the users' labor isn't the content. The movies and tv shows are.