Netflix Doomsday Arrives: No More Password Sharing?
Netflix has been talking about cutting out password sharing for over a year now. After starting its crackdown in Canada, New Zealand, Spain, and Portugal, it has moved on to the United States. Here is a look at what Netflix is doing and how it will affect your account.
Netflix cracking down on password sharing
Netflix has been trying to force more people to subscribe to their streaming service. Ever since the streaming giant started, many people subscribed to it and then shared their passwords with friends and family members. For years, it turned its head to the situation. However, with the streaming giant wanting to add more subscribers, they are finding creative ways to crack down and end this once and for all.
After starting a crackdown by using “paid sharing” in Canada, New Zealand, Spain, and Portugal, Netflix is reportedly “pleased” with the results. They now plan to roll this out to the United States in this upcoming quarter. In the company’s quarterly earnings report, the company said that over 100 million households share accounts. They then said this “undermines our ability to invest in and improve Netflix for our paying members.”
This is a move that will probably see some subscribers cancel their memberships, but that is okay with Netflix, who said that they don’t mind. The company said most users eventually return after canceling accounts to protest something. Netflix called this a “cancel reaction.” They also said that they expect the United States to be like Canada. The subscriber numbers are bigger now in Canada than before the crackdown.
How is Netflix ending password sharing?
The way Netflix has dealt with password sharing is by adding “Paid Sharing.” Netflix subscribers can add two additional people “outside of their household” to their Standard or Premium plans, but they will have to pay extra. Based on Canada, it will be about $6 per person added to the account.
Netflix also has something developed to block devices that try to access an account without properly paying for it. The company has said that people can still use their accounts when traveling or at other locations. This includes hotels and so forth. It is unclear how they will differentiate between that and sharing passwords with other people.
This also comes after Netflix changed its pricing structure. They added a tier with ads that cost less than the regular service. This also comes after the announcement that HBO Max is rebranding as Max and raising its prices, possibly keeping Netflix as the better alternative.
What are your thoughts on the password crackdown Netflix is rolling out? Will you keep subscribing to the service after this? Let us know your thoughts in the comments below.
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