The streaming giant doesn’t want your former roommate to keep using your log-in.
Netflix has long turned a blind eye to people sharing a password with their ex, adult offspring or the friend of a friend of a friend.
In 2019, 14% of Netflix users admitted that they used a Netflix account from someone they no longer live with, according to a survey from analysts MoffettNathanson, Vox reports.
At the time Netflix had 139 million subscribers around the world, so about 8 million people weren’t paying.
For a while, Netflix was okay with that. Or at least, it wasn’t taking any notable measures to curb password sharing.
The company was growing year over year and had a reputation as the leading name in streaming, which was seen as the future of entertainment. So by transitive property, it was more or less seen as the future of entertainment.
So with that in mind, perhaps Netflix didn’t want to risk looking uncool and tight-fisted to its younger users (and their social media accounts) by cracking down.
But now, the free ride might be over.
How Is Netflix Cracking Down On Password Sharing?
As we noted last week, Netflix is testing out a program in a feature in Chile, Costa Rica and Peru that will charge users a little bit extra for sharing their accounts with up to two people outside their household.
The cost will be, per person, 2380 CLP in Chile, $2.99 USD in Costa Rica and 7.9 PEN in Peru.
In a few weeks, Netflix will begin noticing users of the charges. So if a device outside a household logs into Netflix, they may be asked to verify the log-in by entering a verification code sent to whoever is paying for the service.
Essentially, Netflix will keep nagging you until you get your own account, or the person you are mooching off of pays a bit extra. You can also always Venmo them for the favor.
Netflix did not respond to a request for comment, and has not indicated whether it will offer the feature in the United States or anywhere else.
TheStreet
How Much Will Netflix Make From This?
Netflix could end up earning $1.6 billion in global revenue annually, if it rolls out the program around the world, according to estimates by Cowen & Co. analysts, as reported by Variety.
That would amount to a 4% upside to Netflix’s 2023 revenue projection of $38.8 billion.
According to Cowen & Co.’s survey, about 10% of the country’s 116 million broadband households include someone who watches Netflix without paying for it.
The firm estimates that about half of the people not paying for their password will become paying members, and that half of those new members will get their own separate paid account.
Why Is Netflix Cracking Down?
While Netflix isn’t suffering, by any means, the “pandemic bounce” it received in 2020 when people had no choice but to stay inside and check out “Tiger King,” has started to wear off, leading to a 22% plunge last week.
The company has also been dealing with headlines that wonder if the company may have have hit a natural ceiling of 221.8 million paid subscribers, and anyone who would possibly be interested in getting an account would have done so by now.
So maybe the company is now looking at how to plug any leaks in its bottom line, so it can afford to keep making the docudramas about scam artists that America apparently can’t get enough of.
So What Does Twitter Think Of All This?
Plenty of Twitter users aren’t exactly thrilled that they might get kicked off their shared account, and a Tweet from 2017 has been making the rounds lately, as have other thoughts.
