
(Scypre.com) – The era of freely sharing Netflix passwords is coming to a close, as the streaming platform has taken decisive action against household sharing. Through an announcement on its official website, Netflix has launched a crackdown on this practice. Pete Pachal, the Chief of Staff of Content at CoinDesk, cautioned on “Mornings with Maria” that other services are closely observing these developments.
Effective from May 23, 2023, Netflix has begun sending emails to members who share passwords beyond their households, providing clarification on its rules. According to the statement, a Netflix account is intended for use within a single household, enabling everyone residing there to enjoy Netflix across various locations, including home, on the go, or while on vacation. Notably, users can take advantage of new features like Transfer Profile and Manage Access and Devices. Pachal expressed his views on how Netflix’s actions could impact the streaming service industry and its competitors.
Pachal remarked, “The era of rapid subscriber growth seems to be nearing its end. Every service, be it Peacock, Hulu, or any other, is experiencing a plateau in subscriber numbers. Consequently, they are now seeking additional revenue from their existing subscriber base.” He also observed that most streaming services have not directly targeted Netflix thus far, with the exception of some light banter from Amazon Prime on Twitter. Pachal believed this was due to their keen interest in observing Netflix’s actions and evaluating the expected growth following the initial decline.
The technology analyst cautioned that if Netflix’s crackdown proves successful, other competitors may adopt similar strategies. He asserted, “If that occurs, it is likely that many other services will follow suit. After all, why wouldn’t they pursue additional revenue from their existing subscribers? It makes perfect sense to do so.”
Pachal further elaborated on Netflix’s plans regarding the new household rules. When users attempt to log into their Netflix accounts from a different location, they will receive a prompt asking whether it is their primary location, as the account is intended for people within the same household. However, users can still change their location temporarily, such as during vacations or while staying at a summer home. Nonetheless, Pachal warned that Netflix will be monitoring location changes closely. If users repeatedly switch back and forth between the same two locations, Netflix will easily detect this behavior and take action.
Pachal shed light on Netflix’s intention to generate more revenue by allowing additional members to be added to plans, a departure from its previous encouragement of password sharing. He noted that this change has received backlash from consumers, with some even considering canceling their subscriptions on principle, perceiving Netflix’s approach as adversarial toward its own customers.
Initially, Netflix might experience some subscriber losses due to this new policy, but Pachal anticipated that after the initial decline, subscriber numbers would accelerate. He explained, “Following the initial drop, Netflix could witness a period of significant growth. People eventually move past the initial reservations and either add extra members to their plans or create separate accounts.”
“While this strategy poses some risk, it could potentially lead to another phase of substantial growth for Netflix,” Pachal added cautiously.