I downgraded to the $9.99/month SD one screen option because I asked and no one else was watching at all and now I'm rethinking even continuing with that. The upcoming ad-supported tier might be an option but I suspect many subscriptions will become very ephemeral.
The smart move for Netflix would have been to silently transition the "freeloaders" to the ad-supported plan. They should have just done that without all of the dicking around in South America and under the radar. Freeloaders start seeing ads with a friendly link to upgrade to the paid plan. Maybe they do, maybe they don't, but Netflix gets paid either way.
> Is it mostly paying subscribers who intend to cancel because their parents can't watch for free?
No one is watching for free, someone is paying as the plan is limited to 4 simultaneous streams. Why does it matter that my daughter is watching from college?
You can't be handing your password out to hundreds of people and have no one paying, as there is already a limitation on the number of users for an account and that includes mobile devices.