If you’re a Netflix subscriber, then we’re afraid we have some bad news for you! The company has warned its customers that it will be clamping down on password sharing from the new year onwards.
The streaming giant has been remarking for several months that it would be implementing measures to prevent households from sharing their Netflix passwords with their extended family and friends.
As it stands, Netflix currently estimates that up to a third of its customers share their password information with others, despite this being against Netflix’s rules.
The company recently began a trial in South America, which allows Netflix users who have access to another person’s account, to keep their access for a reduced price.
This ongoing trial aims to encourage all watchers to have their own plan with Netflix. If users do not live in the same location that the household’s account originates from, then they will need to input a code to keep using the account.
This new rule comes after recent scrutiny over Netflix’s price hikes. The streaming service increased the fees of all of its monthly subscriptions over the past few months. It has even added a low-cost subscription with adverts, in an attempt to hold on to its subscribers during the ongoing cost of living crisis.
While all streaming services - including the likes of Disney+, Prime Video and Apple TV - have undoubtedly noticed the effects of password sharing, it seems as though Netflix’s growth has been particularly impacted by it. The company is also aware of how unpopular this move could be amongst its subscribers.
“Make no mistake, I don’t think consumers are going to love it right out of the gate,” The Wall Street Journal reported Netflix’s joint CEO, Ted Sarandos, saying earlier this month. We think you could be right, Ted!
Earlier this week, the Intellectual Property Office in the UK also ruled that sharing passwords for streaming services is against the law. So, it seems likely that other streaming platforms will be following Netflix’s lead in the near future.
What a shame!
