Netflix Cracking Down on Password Sharing?
Netflix will test a way to control password sharing in some Latin American countries; could this be the new norm?
Netflix is preparing to charge users in Chile, Costa Rica, and Peru an extra fee for sharing account credentials between households. This initiative will serve as a test for the company to help determine how to address widespread password sharing among customers. Last year, a similar test was run that asked members to enter their account credentials to dissuade non-members from using someone else’s account. These tests are only being run in certain areas at this time, and it’s unknown whether they will be permanent and utilized elsewhere. Chengyi Long is Netflix’s director of product innovation and had this to say in a blog post about the tests:
“We’ve always made it easy for people who live together to share their Netflix account, with features like separate profiles and multiple streams in our Standard and Premium plans. While these have been hugely popular, they have also created some confusion about when and how Netflix can be shared. As a result, accounts are being shared between households — impacting our ability to invest in great new TV and films for our members.”
I really don’t like this. I understand that Netflix is a business, and they need to protect their profit margins. I can imagine how frustrating password sharing would be for executives and shareholders. But I’m not sure how practical it is to track password sharing in this way and crack down on it. I don’t see much difference between giving someone your Netflix login and just inviting them over to watch it at your house. Will they eventually find a way to make money off of that too? My sister lives in a separate state from my parents because she’s attending college there. She uses their Netflix because she is part of the same household financially and physically during school breaks. Will she have to get a separate account? If this becomes the new normal for Netflix, it’s only a matter of time before Disney+, HBO Max, and other services follow suit. I don’t think that would be in their interest or that of the customers. For instance, in my family, we share accounts for streaming services to have them all, as opposed to me just having Disney+ and Hulu, my parents having Netflix, etc. The content is being paid for each month by the account holder, so I don’t see this as equivalent to piracy or other forms of digital theft. For financial reasons, this initiative will not result in many “moochers” getting their own accounts. Streaming services go up in cost almost yearly, and there are constantly more coming out; eventually, something has to give. Is this the hill they want to die on?
