Netflix puts a stop to password-sharing
Netflix is bringing new rules to stop password sharing. It can be good news for Netflix and its investors hoping to increase revenue. But it surely is bad news for customers, their families, and their friends.
So Netflix is using a unique multi-step process for bringing out this unpopular change. First, it warned everyone about it in advance. After that, it slowly started bringing out changes in secondary markets in Latin America before touching the Canada and U.S., where Netflix gets 44% of its revenue.
When will the new password-sharing rule apply
The company said that new changes might come in more places in the first months of 2023. In its newest edition, it has given more information about how the password crackdown might actually help, but it hasn't provided enough info for customers to understand how it will affect them. Or when.
These are smart tactics from a smart company. The reaction to this latest change on social media and media is not positive. By the time these new changes are implemented in the U.S., it will feel like old news.
Users who do password sharing may actually create new accounts, or switch to other streaming platforms like Amazon Prime, Disney+, or Hulu instead. The new rule might also trigger some existing customers to cancel their subscriptions. However, it is unlikely to see large numbers of people quit Netflix because the outrage will be dampened by then.
New password-sharing rules will annoy users
Even if you're not a user who shares their Netflix password, the new rules can annoy you at some point- if you're traveling or watching Netflix at a cafe or at someone else's home. Netflix said the user might be asked to verify their devices in certain situations when the user is away from home. The company assures that "Verifying a device is quick and easy."
If the process sounds complex to you, you may be thinking "how many times will I have to go through this process." Unfortunately, there's no immediate answer to this as Netflix hasn't provided many details about that. It said that if a user is away from a Netflix household for a certain amount of time, you may be sometimes asked to verify their device.
Password-sharing may ask for periodic verifications
The rules also say that the user may have to verify their device "periodically." But if you're at home, you won't have to do it as Netflix will recognize your device from your IP address and device ID. It can annoy users who are concerned about sharing their data.
Is the crackdown on password sharing a stupid move, especially during a time when streaming platform competition is at an all-time high? Or was Netflix foolish in the past to have a rule that it knew people would break? Will the vast number of freeloaders really buy their own Netflix accounts, or will they simply ask their friends to share the 4-digit OTP?
We will know the answers only when the new password-sharing rule is brought in.
