Netflix on Tuesday expanded its crackdown on users sharing passwords with people beyond their immediate family as it seeks to shore up revenue at the leading streaming television service.
"A Netflix account is for use by one household," the company said in a statement.
Netflix said early this year that more than 100 million households were sharing accounts at the service, "impacting our ability to invest in great new TV and films."
Netflix has experimented in a few markets with "borrower" or "shared" accounts, in which subscribers can add extra users for a higher price or transfer viewing profiles to separate accounts.
On Tuesday, it announced it was expanding the policy to more than 100 countries.
As growth at Netflix cooled last year, the Silicon Valley-based streaming giant set out to nudge people watching for free with shared passwords to begin paying for the service without alienating subscribers.
"This account sharing initiative helps us have a larger base of potential paying members and grow Netflix long term," co-chief executive Ted Sarandos said on an earnings call.
The company told financial analysts recently that it had delayed a broad crackdown on password sharing "to improve the experience for members."
Netflix said it made sure subscribers have seamless access to the service away from home or on various devices such as tablets, TVs or smartphones.
"They are just trying to reduce theft of their service," independent tech analyst Rob Enderle of Enderle Group said.
He reasoned that Netflix likely pays royalties when subscribers watch some shows or films on the platform, so non-paying viewers could add to the service's expenses while not contributing to revenue.
"In theory, Netflix loses money because they are paying royalties and people are getting the shows for free," Enderle said. "It makes no sense for Netflix to allow that to continue."
Netflix in April said its subscriber numbers hit a record high 232.5 million in the first quarter of the year and that its nascent ad-supported tier was faring well.
The company said in a recent presentation to advertisers that it had more than five million subscribers to its ad-support tier.
The launch of an ad-subsidized offering around the same time as a crackdown on password sharing is no coincidence, reasoned Insider Intelligence senior analyst Ross Benes.
"People who freeload, as well as those who choose cheaper advertising tiers, tend to be price-sensitive customers," Benes told AFP. "For the freeloaders who get booted, the cheaper ad tier will be an attractive option."
Getting people viewing for free to sign up for the Netflix ad tier would improve its appeal to advertisers, Benes added.
But there is also the risk that people no longer getting Netflix free will opt to "glom onto their friends' and families' Prime Video, Disney+, or Max instead," Benes said, referring to rival streaming services.
For the first time ever, US adults will spend more time this year watching digital video on platforms such as Netflix, TikTok and YouTube than viewing traditional television, Insider Intelligence has forecast.
© 2023 AFP
25 Comments
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falseflagsteve
Well, I have the family subscription so my parents can watch but they are in the U.K., I hope this doesn’t effect me.
Larr Flint
I think Netflix should focus more on their offer than on chasing a goose.
Recently Netflix has nothing to offer really.
Aly Rustom
Looks like I'm going to have to subscribe soon. Can't live without Netflix
proxy
Maybe if they hadn't overpaid Adam Sandler for all his crappy movies.
Bob Fosse
“Netflix in April said its subscriber numbers hit a record high 232.5 million in the first quarter of the year and that its nascent ad-supported tier was faring well.”
Nobody going to say ‘go woke go broke’?
yildiray
I am in a similar arrangement with family back home using my account. We are the absolute targets of this haha.
I’ve seen on Twitter many getting emails about it already but I haven’t gotten one yet. Probably won’t be far off though. Once it does I’ll downgrade my plan, no need to keep on the top tier if I can’t get full use of it.
wallace
I don't think Netflix meant family members across the globe. Use a VPN then.
justasking
Watching for free? Who’s watching for free?
Theft? You can’t get a password without paying. You pay for simultaneous screens and whoever uses it is already paid for.
Ridiculous.
Haaa Nemui
They are targeting everyone. VPN is no guarantee against this. I've used VPNs on Netflix and while they can work to access shows that are already available in your own region as well as the region you're trying to access, if there is something you are trying to watch that isn' available in your region it can be hit or miss. I joined up from back home and my account was based there. Received the email it was going to happen, my family members received the message through the service when they logged in, giving a date when it was going to be introduced. I canceled. Found it wasn't worth it for the amount I was watching and for the rampant cancellation of shows after a single season, and if my family couldn't share, simple decision really.
Kakukakushikajika
What was the name of that website again? Pirate something... the logo was a pirate ship... ^^
carpslidy
password sharing is basically stealing and results in higher prices and a lower quality product for those who pay.
CaptDingleheimer
I wish they'd stop cracking down on VPN servers so my wife can watch Netflix Japan here in the States. Worked for awhile...
jforce
Netflix talks a big game, but password sharing will continue. Nothing to see here.
tora
So much for a globalised world eh! So they're saying "family* means under the same roof? Or the same city? Or the same country, but not another country? Why should it matter where you are?
100 million are sharing passwords? Means headed to 100 million less subscribers. This will probably be the final nail in the coffin. And hopefully it spreads to other subscription services as well and they're all gone within a few years. They got greedy and their models were flawed from the start.
Anyway, sick of being leeched for every penny and not owning anything.
tokyo-star
back to torrenting then, i guess
Ichigo
Is Japan included in that list?
I haven't gotten any e-mails from Netflix other than recommendations for new offerings.
My partner and I both use Netflix regularly, including at the homes of our parents and at a company dorm in a different city, and we haven't noticed anything different so far. But we do have the premium account, so that may help keep us off the radar.
Haaa Nemui
It doesn’t. That’s what I had too.
sir_bentley28
Netflix Japan has nothing goos to watch anyway! Try to search for any good classics like the Loaded Weapon series, Spaceballs, Hot Shots part Deux or even Terminator 2. They dont have the simple old movies. Just these new stupid "woke" rubbish videos they keep trying to cram in your face. AbemaTV has mote variety.
Eastman
netflix-at least in Japan-is not worth of its cost.
i gave up and did not extend to pay for rubbish and yes-I dont miss it at all.there is much better content available at youtube and for free...
falseflagsteve
Eastmen
I agree with your analysis regarding the content, it’s rather thin on the ground in Japan isn’t it. Well, I use a VPN to watch other countries content you see, usually USA or UK. However downloads don’t work using a VPN anymore. If you use a VPN don’t use on your data plan, it will cause you to have a huge bill so just use on Wifi.
Haaa Nemui
only if you’re not on an unlimited data plan.
Regarding the watching UK and US stuff… if your account location is set to anything other than your physical location, you’ll be lucky to be able to access your account after this process is completed. A VPN won’t help. They offer some sort of code to use but you have to visit your account location once every few weeks. I can’t remember the exact details but a vpn won’t help you around it.
falseflagsteve
Hasa
Yeah, if unlimited it’s ok, but how many people use that. ROFL
Been using VPN for years with Netflix, Disney and U.K. Media like BBC without issues
You have to turn off location services for it not to be detected by Netflix BTW, the others don’t need it.
Haaa Nemui
a vpn simply won’t make a difference. If Netflix doesn’t recognize you being at the same location as the family members you share with, it’ll cut you off (or your family members). You won’t be able to use it without being at the same physical location. It isn’t based so much on device information (phone, laptop, tablet etc) but more on household network information (modem, router etc)
Haaa Nemui
Sorry, maybe we’re talking about two different things. Yes you can access Netflix with a vpn, but it won’t be a work around for their anti password sharing process.
falseflagsteve
Haaa
oh yeah, my dad can’t connect to my Netflix now, nor my dear mummy. They’ve bought plans for themselves now, what a shame