Why Netflix Started Preventing Password Sharing

Netflix has for years ignored the fact that many of us are scamming the accounts of friends and family. But the streaming king now appears to be rethinking his policy in a different direction, a shift that comes as Netflix’s growth slows and annual production budgets to churn out hits. higher than ever before. In other words, Netflix needs more money.

The company this week announced that it is testing a suppress password sharing that could limit the number of accounts that appeal to account holders outside of their household. As part of this test, Netflix will soon be offering users in Chile, Costa Rica, and Peru the ability to add up to two additional members to their Netflix membership as a sub-account. In Costa Rica, this will be about $3 more than Netflix’s monthly cost.

Netflix has extremely loose on password sharing, with Netflix boss Reed Hastings go very far as to call it a “positive thing” in the past. While Netflix technically forbidden users share accounts “with individuals outside of your household,” the company said only in last year or so that it might be exploring ways to gently execute a crackdown on shared accounts, mainly through false checks like the one announced this week.

But there’s something different about this new experiment, as the latest comes at a pivotal time for the company. Netflix has long enjoyed explosive subscriber growth, but lately it’s been begin to weaken. Balancing with astronomical content budgets of tens of billions, Netflix need to get creative about how it brings in cash. Tracking the entire hall on shared accounts is definitely one way to do it, especially since Netflix is ​​already seen by many households as an essential service.

“Netflix let it go for a long time,” said LightShed Partners analyst Richard Greenfield. The Verge, which speaks to Netflix’s former surroundings with shared accounts. “When something becomes so important to your day-to-day life, it gets easier and easier to crack things like password sharing.”

That’s the main difference between Netflix and some of its lesser rivals, who are said to be vying to be a supplement to, rather than a direct competitor, the top dogs in the field. streaming online. Like everyone else, Netflix is ​​moving on increase its price to help offset its costs, with latest price increase will come into effect at the end of this month. But while everyone else in the streaming sandbox Introducing ad levels To attract subscribers (and mitigate the blow to the wallet), Netflix has yet to follow suit.

Then tackle the account sharing issue, providing an alternative route to Netflix for adding paid members. Greenfield says password cracking could be one way Netflix adds 10 to 20 million subscribers in the US market.

“This is how you close that gap,” he said.

It should be noted that Netflix is ​​still calling this a “test” for now. Netflix hasn’t quite pulled the rug out from underneath those of us, lucky enough to have an ex or grandparent who doesn’t mind sharing their password – and maybe Netflix will implement some alternative strategies. to kick us off the account of people outside of our households. Downgrading a shared account risks driving away its own users, which isn’t ideal for any streamer vying for attention right now.

But at the same time, password cracking has long seemed a guaranteed outcome during streaming. Distributors do not create content from their heart. However, the current streaming is gone, it is their users who will pay tabs for their online diet.

Disclosure: The Verge currently producing a series with Netflix.

https://www.theverge.com/22983315/netflix-password-account-sharing-test-streaming Why Netflix Started Preventing Password Sharing

Fry Electronics Team

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