It is anticipated that Netflix would prohibit customers from sharing accounts with acquaintances unless they pay more, although this is viewed as a significant hurdle for the firm.
Netflix has tried for years to prevent account sharing. According to Netflix research conducted in 2019, this is the greatest barrier to increasing the number of customers. However, the business has not yet discovered a solution that does not make consumers dissatisfied. The appearance of Covid-19 in early 2020 caused the number of Netflix customers to rise, forcing the corporation to reconsider its plan to restrict account sharing.
The platform did not intend to ban it on a large scale until this year, when the number of members began to decline.
Reed Hastings, the CEO of Netflix, stated at a meeting held in early 2022 that the pandemic’s impact on subscriber growth prompted the firm to explore restricting account sharing further. Netflix also required some time to resolve the issue.
According to Netflix, more than 100 million individuals share Netflix accounts with family and friends. They want to cease this practice in 2023 by charging account customers extra.
However, Netflix’s action risks destroying the goodwill it has established over the years and angering subscribers, which is not in the company’s advantage given the number of competing streaming services.
This month, Netflix co-CEO Ted Sarandos cautioned investors, “I don’t believe people enjoy this when it occurs.”
According to Netflix’s terms of service, subscribers must control the devices they use and not disclose their credentials. However, the corporation has never fully enforced this regulation or established explicit login restrictions.
In order to minimize user concerns, Netflix has repeatedly “blocked in advance” the idea. They also altered the content of the user support website, which now indicates that accounts should only be shared among household members. The corporation asserts that it will enforce this policy using IP addresses, device data, and account behavior.
With 223 million global users and a market value of $128 billion, Netflix dominates the video streaming business. This platform is the first to discover a solution to the problem of account sharing, but it won’t be the last. In the future, competitors such as Disney+, HBO Max, and Paramount+ may need to develop ways to prevent it in response to pressure to grow user numbers and income.