Netflix loses valuable profits by sharing accounts. According to reports, the group intends to take action against this in the next year.
The end of Netflix password sharing is near Wall Street Journal reports It refers to people who are “familiar with the situation”. For years, the streaming provider has been pondering how to take action against account sharing. Now Netflix wants to fix the problem in 2023.
Netflix logo on a notebook: The company wants to prevent friends from sharing accounts in the future.Image: shutterstock
Why? According to the Wall Street Journal, more than 100 million people view the service with shared passwords. It is said that they borrowed passwords from family members or friends. As a result, the group loses potential revenue.
CEO Reed Hastings said at a company meeting that the issue had been covered up for the past two years. The reason for this was the boom in streaming during the pandemic. During that time there were many new subscribers.
Reed Hastings, CEO, Netflix. Photo: Cornerstone
As the paper continues to write, the company is now more concerned about a customer downturn this year. This is why Netflix wants to “take extreme measures” to prevent password sharing in the future.
The pressure on customers must be increased step by step
How does Netflix plan to do this? As a first step, Netflix indicated on its help pages this year that accounts can only be shared by people who live together, according to the Wall Street Journal.
Next year, Netflix next wants to require people who share accounts to pay. They say that the pressure on customers must be increased step by step. The company wants to start requesting payment in the USA.
How does Netflix plan to find out who uses shared passwords? The company has stated that it wants to use users’ IP addresses for this. Device IDs and account transactions must also be used to identify shared accounts.
Disney+ and other service providers could follow suit
As the Wall Street Journal continues, Netflix is the first streaming provider to tackle password sharing. But it likely won’t be the company’s last, the newspaper quoted investors and media executives as saying.
Other streaming competitors are also said to suffer losses. In the coming years, the pressure to make money and keep growing could lead services like Disney+, HBO, and Paramount+ to deal with the split account problem as well.
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