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Is this familiar? You want to watch a movie marathon. You fire up your laptop and log into Netflix to choose which account you want to watch with, but the account is not yours. Your mom, your friend across the country, your cousins, or your classmates might all have an account. You get the picture. Because you’ve logged in to someone else’s account, you’re technically engaging in password sharing, which is costing Netflix and other streaming platforms millions of dollars per year. Netflix has some bad news for us leeches. To prevent password sharing, the company is testing a new approach in Argentina, El Salvador, and Guatemala. Bloomberg’s report describes this process as follows.
In addition to the monthly fee, you will be charged extra if you use an account that belongs to someone outside your household for more than two weeks. It’s a mere pittance of around $3 a month in most test countries, but it adds up. It uses IP addresses and device IDs to identify your account. Therefore, it knows if you are streaming an account that is not yours. It’s unclear how it dreamed up this rule. As a fly on the wall, I’d love to see the reaction of folks who travel or have two routers or any of the other issues that come to mind. You can thank Netflix for this solution. In addition to that, it is working on a feature that allows you to see where your account is being accessed outside your home.
Restricting the amount of times a password can be used may be a wise business decision by Netflix. We may be turning on each other if we’re forced to snitch on one another. As I said at the start of the show, restricting password sharing may just be a smart business decision on Netflix’s part. A company losing nearly eight hundred million dollars in membership revenue this year due to people accessing their own subscriptions rather than subscribing to Netflix might be a consequence. According to a report from Cordcutting.com, Netflix users will start clutching their wallets as a result of HBO Max, which despite losing nearly five hundred million dollars due to password sharing, has stated that it won’t crack down on the practice.
All that sounds great, but HBO Max has built-in methods to stop rampant password sharing, like its restriction on simultaneous streams. Therefore, HBO Max believes that its capabilities will prevent password sharing from becoming the norm for its platform, even though we were taught in kindergarten that sharing wasn’t such a good thing. Sharing isn’t always a good thing, especially not now, when streaming services are asking consumers to be a little more thrifty.
What do you think of Netflix account sharing’s new policy? Let us know down in the comments.