No one can deny Netflix popularity in the streaming market. The SVoD has expanded its services in almost all countries, but since Netflix is US-based, it offers a more extensive library to American citizens. However, streamers still know how to get American Netflix in Australia and other regions with a VPN!
If that wasn’t enough, streamers also know how to take full advantage of premium Netflix subscriptions by indulging in “password-sharing”. As such, when the SVoD starts exploring ways to reduce this practice, it is understandable that it might frighten a lot of people.
Stay with us to learn more about Netflix’s password-sharing crackdown and its impact on streamers!
A Password Sharing Nation
A third of US-based Netflix subscribers admit that they share passwords. Analysts say that could cost the broadcasting industry as much as $ 25 billion a year, or just under half of the current global income. Netflix allows its users to share login details, and it proved as a blessing in terms of growth.
A lot has changed over time. Netflix has almost captured the US market. Nonetheless, now the company wants to stop password sharing outside the household. Undoubtedly, Netflix’s primary objective that it provides a user-friendly, trouble-free, and flexible streaming experience – has not changed.
Even if that means being lenient about unblockers and region-hoppers worldwide who use VPNs to change their Netflix libraries. In fact, it doesn’t take any action against such Netflix users. The SVoD simply gives them an error message if caught to “turn off the unblocker or proxy.”
Netflix’s Password Sharing Crackdown
Netflix, the broadcasting giant, faces stiff competition than ever before, as not only Disney + but also HBO Max, Peacock have entered the scene. According to a research firm “Magid,” about 46 percent of video distribution on demand for customers shares at least one subscription service.
More than half of users do so by assuming that the person they are sharing it with will use the app more often than a single view or perhaps even indulge in binge-watching on Netflix. However, the more people paying for a subscription will improve Netflix’s financial situation.
Therefore, the SVoD has begun exploring a feature that could motivate users who borrow a password from someone outside their family to purchase a subscription. If you do not own a Netflix account, there is an option to receive a code via email or text message from the account holder, which you can enter to keep viewing.
GammaWire reported on March 10 that some Netflix users, on specific devices, have noticed a warning in their accounts asking them to verify their access to the service. “If you do not live with the owner of this account, you need your account to stay tuned,” the message read.
Netflix has provided three ways to proceed: verify the account by email or text, confirm later, or sign up for a free trial. So, you can keep enjoying your favorite movies.
The Pirates are Worse than Moochers
While Netflix requires everyone who uses the service to pay for it, the company would prefer users to use Netflix – or not pay – rather than steal its content in evil ways. The password crackdown will turn some moochers into pirates who illegally download Netflix shows off Torrent sites.
Netflix loses 10% of revenue due to theft, according to a 2019 study by CordCutting.com. Freeloaders are not good, but pirates are nasty. The new password clampdown will threaten the global image of Netflix, a company that has spent ten years becoming one of the world’s best streaming businesses.
However, the history of such universal attempts helps to understand that eliminating password-sharing can cause more losses to Netflix revenue than increasing it because some users are more likely to move towards free streaming services.
The Bottom Line
As the pandemic subsides and consumers spend more time outside again, Netflix is also looking for ways to retain subscribers. So, despite the password crackdowns, you can look forward to Netflix releasing some excellent features in the future while cutting the freeloaders without damaging the brand.