We have covered Netflix’s intention to impose a password crackdown multiple times this year. The famous streaming company even tested the password crackdown in some countries to check the user reaction. While company execs may feel that password sharing crackdown could boost their revenue, they need to see the bigger picture.
WSJ’s new report dives deep into why Netflix is hell-bent on bringing a Password Crackdown into the picture. Moreover, the post discusses the ramifications of such a move and the potential decrease in paying subscribers.
Is Netflix Password Crackdown necessary?
You must understand that Netflix needs to increase its subscriber numbers to be on a constant upward growth trajectory. It offers a family plan too, which allows a family to share the account with family members. Netflix identified the issue in 2019 when many users who shared the account didn’t live in the same residence based on their IP addresses and a few other metrics.
Netflix wants you to pay more if you want to add someone outside your family to use the account. It is cheaper than buying a personal account, but there are many points on which Netflix is missing out. Not all family members live in the same house, area, neighborhood, city, or country. But they might have bought the account with the intention of saving up by connecting everyone to the family plan.
You may start seeing a warning in the coming months if you stay away from the family or use multiple devices while away from home. It is very complex to determine who is sharing an account illegally this way because members of a family can be in different locations far from each other.
Netflix subscribers are openly sharing their thoughts on the Netflix Password Crackdown. Most say they will stop buying annual subscriptions and drop the service altogether if this happens. A few users also suggested that pirating shows will become more popular because paying subscribers will be tormented by such a move and forced to pay extra. This may compel them to access pirated Netflix content which is available in abundance on thousands of sites.