Netflix is cracking down on password-sharing users, which could help the company make $1.6 billion a year. The crackdown, which began in early 2017, has resulted in the termination of tens of thousands of accounts. While Netflix has not released specific numbers, the company’s chief content officer Ted Sarandos said in a recent interview that password sharing is “a very small part of our business.”
While some have criticized Netflix for its crackdown, the company insists that it is necessary to protect its intellectual property. In fact, Sarandos noted that Netflix spends “billions of dollars a year” on original programming. By cracking down on password sharing, Netflix can ensure that more of those funds go towards creating new content rather than compensating for lost revenue.
Netflix is cracking down on password-sharing users. This crackdown could help the company make an estimated $1.6 billion a year. Password sharing has been an ongoing issue for Netflix, as some users share their passwords with friends and family members who do not have their own subscriptions. In order to combat this, Netflix is testing a new feature that will require users to enter their payment information in order to watch shows and movies.
It is against Netflix’s terms. Netflix’s terms and conditions state that accounts cannot be shared with anyone outside of your family, but they don’t define what constitutes a household. It has not shown any interest in users who share passwords in practice. The corporation that had tweeted “love is sharing passwords” in 2017 seemed to have changed its mind. It is now trying to find a way to get rid of all joint accounts and create its own.
reports that the company is currently testing a new feature to prevent individuals from exchanging passwords. It also encourages them to purchase additional memberships if necessary. Netflix will make it harder for customers to share accounts. This has been a problem for some time, and testing of features to prevent password sharing has been ongoing for the last year. They are being expanded, which suggests that Netflix is sticking to the policy.
The crackdown will involve banning shared passwords and limiting the number of concurrent streams for each account.
Netflix has been struggling to keep up with its growing user base, as subscribers have been sharing passwords to avoid paying for multiple accounts. By cracking down on password sharing, Netflix can ensure that each subscriber is paying for their own account and that the company is not losing any money to password sharing.
The crackdown could also help Netflix compete with other streaming services such as Hulu and Amazon Prime Video. These services offer their own exclusive content, which could lure Netflix subscribers away from the platform. By limiting the number of concurrent streams, Netflix can ensure that its subscribers are not watching content on other platforms instead.
Netflix is planning to crackdown on password-sharing users in an attempt to make an extra $1.6 billion a year, but what could this mean for the company’s customers? First and foremost, it’s likely that It will start charging users who are sharing passwords with others. This could be bad news for families and friends who have been using one account to watch shows together, as they’ll now have to pay separately.
Netflix is also likely to start banning users who share passwords from its service altogether. This could be a problem for people who travel or move frequently and want to take their Netflix account with them, as they may no longer be able to do so. Finally, the crackdown could also mean that Netflix will start blocking VPNs and other methods of accessing the service from outside of the country where it’s based.
This means that the company will be introducing two new features in Chile and Costa Rica. Select countries will allow users to create “sub-accounts” for people with whom they don’t reside. They also have the option to transfer their profiles to others who might be the true account owner. It will use technologies such as IP address monitoring and device identifications to attempt to identify accounts shared by users. People caught sharing information will be encouraged to sign up for the “subaccounts.” This functionality is not yet available in all countries.
The report estimates that about 20 percent of Netflix users are sharing passwords, which amounts to about 10 million people. If Netflix were to start charging these users, it could bring in an additional $1.6 billion in revenue.
Netflix stated that it would “work to recognize these two functions for members in those three countries before actually making changes elsewhere in the world.” It has raised concerns about a wider crackdown.