Netflix May Stop the Sharing of User Accounts
Key Points
- Netflix is considering a new policy that would crack down on password sharing
- The company is exploring ways to verify whether users are sharing their passwords with people outside of their households
- If Netflix implements this policy, users who are caught sharing their passwords may have to pay a fee to continue using the service
Watching your favorite Netflix shows and movies may soon become a costly activity, as the popular streaming platform has announced plans to crack down on password sharing. With millions of people around the world using Netflix, the company has become increasingly aware of the practice of password sharing, where users give their login information to someone outside of their household to avoid paying the monthly subscription fee.
While Netflix has traditionally turned a blind eye to password sharing, the company is now looking to crack down on the practice to boost its revenue. Netflix plans to do this by introducing a new fee for users who share their passwords with people outside of their household. This new fee would likely be a small amount, but it could add up quickly for Netflix users who frequently share their password with others.
You may be wondering why Netflix has decided to crack down on password sharing now, after years of tolerating the practice. The answer likely has to do with the company’s recent price hikes. Netflix recently raised its monthly subscription fee, and depending on the current plan, many households saw their monthly subscription fee increase. By cracking down on password sharing, Netflix can ensure that more of its revenue goes toward supporting the platform, rather than being used to cover the cost of password sharing.
In 2016, Netflix co-CEO Reed Hastings commented on password sharing, saying that the practice didn’t really affect Netflix’s overall revenue. However, it seems that Netflix has had a change of heart on the issue, and is now taking steps to crack down on password sharing. If you’re a Netflix user who frequently shares your password with others, it’s important to be aware of this impending change. While Netflix has not yet announced an official timeline for the implementation of its new password-sharing fee for households in the US, the company will likely roll out the change soon.
Why Does Netflix Want to Put an End to Password Sharing?
The reason for the change of heart is likely a variety of factors, including Netflix’s recent price hike for its monthly subscription fee and the number of subscribers Netflix has been losing. Netflix recently announced that it has lost nearly 200,000 subscribers during the first quarter of 2022, and Netflix attributes the loss to shared passwords and the high competition in the streaming market.
The global number of Netflix subscribers surpassed 221 million in 2021, with nearly 100 million additional households sharing Netflix passwords. With many households seeing their monthly fees increase by $1 to $2, Netflix is looking for ways to make up for the loss in revenue. While Netflix users may not be happy about the change, it’s important to remember that Netflix is a business that needs to make money.
How Will Netflix Know Who’s Sharing Passwords?
In March, Netflix introduced a new password-sharing prompt for subscribers in Costa Rica, Chile, and Peru that requires users to verify they are the original account owner. The user will be sent a verification code to the Netflix account’s primary email address and will be prompted to enter that code. Anyone who cannot verify their identity will not be able to log in and will be asked to create a new account. Users who can verify they are the account owner will be asked to pay a small fee to share Netflix with an additional user.
When Will the New Password Sharing Policy Begin?
Netflix has not yet announced an official timeline for the implementation of its new password-sharing policy in the US.
How Much Will It Cost for Users to Share Passwords?
The password-sharing fee program that was rolled out in Costa Rica, Chile, and Peru in March charges Netflix members $2.99 per month to share Netflix with an additional user. Netflix will likely charge a similar fee for password sharing in the US when the policy is rolled out in the US.
What Are the Risks of Sharing Your Netflix Password?
It’s not surprising that Netflix would want to put an end to password sharing, but there are also some security risks associated with the practice. When you share your Netflix password with someone, you are essentially giving them access to your Netflix account. This means that they can log in to Netflix and view any of the shows or movies in your Netflix instant queue. In addition, they can also view your rental history and see what you have been watching.
If you are sharing your Netflix password with someone, they could also change your password and lock you out of your account. They could also download Netflix content to their desktop or mobile device and share that content with others. Sharing your Netflix password may seem harmless, but it is important to be aware of the security risks that can come with password sharing, such as:
- The potential for password theft
- The potential of someone sharing your password with people you do not know
- The possibility of identity theft if you use the same password on other platforms
- The potential of being locked out of your account
Conclusion
As Netflix prepares to implement its new password-sharing policy in the US, it is important to be aware of the potential risks that come with sharing Netflix passwords. While Netflix users may not be happy about the policy, it is ultimately a business decision that Netflix must make to protect its bottom line. If you are sharing your Netflix password with someone, be sure to keep these security risks in mind. Don’t forget that these same risks apply to other password sharing.
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