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Netflix restricts password sharing, leaving some angry and confused

Updated: Nov 29, 2023

Introduction-


Netflix, the world's leading streaming service, recently implemented a new policy that has left many subscribers angry and confused.


Netflix Greed Money

The company has started to restrict password sharing, which has been a common practice among friends and family members who share a Netflix account to save money.


This move has sparked a heated debate among subscribers, with some supporting the decision, while others are frustrated and disappointed.


In this blog post, we will discuss the reasons behind Netflix's decision to restrict password sharing, the reactions of the subscribers, and the impact of this policy change on the streaming industry.


# The reasons behind Netflix's decision to restrict password sharing


According to Netflix, password sharing has been a significant issue that affects the company's revenue and growth. The company's terms of service have always prohibited password sharing, but until recently, it has not actively enforced this policy.


Netflix's Chief Product Officer, Greg Peters, said that the company is implementing this policy to prevent password sharing among non-household members. He added that the company is looking for ways to ensure that the people who are using the service are paying for it.


# The reactions of the subscribers


The announcement of Netflix's policy change has caused mixed reactions among subscribers. Some people support the decision, saying that it is fair to pay for the content that they consume.


They argue that password sharing is like stealing, and it is not fair to the creators of the content. On the other hand, some subscribers are frustrated and disappointed with this decision.


They say that sharing Netflix accounts is a way of saving money, and it has become a common practice among friends and family members. They also argue that by restricting password sharing, Netflix is alienating its loyal customers.


“I’m not paying eight more dollars, I’m just not,” says Andersen, who plans on canceling her $19.99-a-month premium plan. “I’m paying plenty as it is. I understand the price has to go up over time — that didn’t bother me at all — but to say now I can’t use it for myself? That’s crazy.”


*A customer support representative told her that she could keep sharing her account if she streams for a few minutes from her smartphone, drives 25 minutes to her parent’s house, streams again from her phone on their WiFi, and finally logs them back into her account from their TV.


She was told to do it every 14 days and just pay her original $9.99 a month. She decided not to cancel.**


*Levin said. “We all have multiple accounts, Prime, Max, Disney. It’s not like we’re not willing to pay for the things that we want, it’s that you built your service on the brand that you could share with your family and now you’re changing it.”**


The impact of this policy change on the streaming industry


Netflix's decision to restrict password sharing is expected to have a significant impact on the streaming industry. Other streaming services, such as Hulu and Disney+, have also been affected by this policy change and are expected to follow suit.


This move is expected to increase revenue for these companies and also encourage more people to subscribe to their services. However, the downside is that it may result in a decrease in the number of subscribers on Netflix.


People who are not willing to pay for the service may opt for other streaming services that are more affordable.


“Netflix is a company that’s built itself out of super fans and been very consumer-focused, so creating flexibility in whatever they do for edge cases is important for them, and adding restrictions could create friction,” says Jason Kint, CEO of the digital media trade organization Digital Content Next.


Based on the comments from Netflix executives in the recent earnings call, it seems that similar changes are likely coming to the US and other markets. But the specifics of what Netflix will be rolling out in each country aren’t yet clear.


# What’s next for affected streamers


Some people are in situations where paying more money just doesn’t make sense. For example, paying subscribers who split their time between different locations, either for work, because they have a vacation home, or for family reasons.


But many people who got notifications are exactly who Netflix is probably targeting: parents sharing with college students, adult children who share accounts with their parents, and friend groups splitting the costs of a few subscriptions.


Years ago, Ammy Woodbury and her friends went in on a premium Netflix account together. She says she gets that the company thinks its business model isn’t working anymore, but the change pushed the group to cancel.


# Conclusion


In the January earnings call, Netflix executives emphasized that they are bracing for blowback as they ready the password-sharing crackdown.


“I think it’s worth noting that this will not be a universally popular move,” Peters said. “There will be current members that are unhappy with this move. We’ll see a bit of a cancel reaction to that. We think of this as similar to what we see when we raise prices.”


Based on the comments from Netflix executives in the recent earnings call, it seems that similar changes are likely coming to the US and other markets. But the specifics of what Netflix will be rolling out in each country aren’t yet clear.


In conclusion, Netflix's decision to restrict password sharing has caused a lot of controversy among subscribers. While some people support the decision, others are disappointed and frustrated.


The move is expected to have a significant impact on the streaming industry, and we can only wait and see how this policy change will affect Netflix's revenue and growth.

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