After months of lead-up, Netflix has officially enacted a new password-sharing policy, and some customers aren't happy. In December 2022, the platform announced that password sharing would no longer be tolerated on the streaming service, starting on an unspecified date in 2023. Then, Netflix was still piloting its new password-sharing-free model to work out the logistics. Netflix's Help Center pages were recently updated to include the new policy that will force users to log in to the account's home Wi-Fi connection every 31 days in order to keep using the account in other locations. The platform will still allow subscribers to utilize multiple devices, but the devices must be from the same household.Customers took to social media to share their collective rage upon the update of Netflix's password-sharing policy release. Many users have offered their concerns with the move, arguing that the policy update will only hurt the streamer instead of helping it and could lead to more piracy. More importantly, some have argued that the move is anti-consumer. Check out reactions to the news below:
Why Is Netflix Cracking Down On Password Sharing
Netflix has gone through long and public subscriber fluctuation drama over the last year. In early 2022, it was revealed that Netflix was rapidly losing subscribers. That narrative eventually led to the decision to limit password-sharing on the streamer. The goal of limiting password-sharing was to convert users using other people's accounts to paid subscribers. Netflix reported a very successful 2022 Q4, but the company is still moving forward with its password-sharing crackdown. The policy was tested out on Netflix in Latin America before it was green-lit for further expansion. The results obviously met Netflix's expectations, as the plan is now being rolled out in other locations.
With a streaming recession expected in the future, and signs of one already starting, Netflix has been a figurehead for much of the content-cutting and anti-user drama that has surrounded Hollywood in recent months. It's been a rough PR time for Netflix due to the cancellations of many shows and some films that were deep into production or already completed. Recently, Netflix co-CEO Ted Sarandos said that Netflix has no plans on going back on its canceled shows, despite much public outcry to save them. Netflix is far from the only company to go through this period of uncertainty, though.
Warner Bros. and HBO Max have gone through a similarly problematic period of public relations pertaining to content cutting. To this point, though, Netflix is the only major streameer to make such drastic changes to its password-sharing policy. Netflix's decision could have huge ramifications as well. If the move leads to marked financial success for the company, more streamers likely will follow suit. Streaming, like most other mediums, has largely been a copycat space, so eyes will undoubtedly be fixed on the outcome of Netflix's move. Ultimately, if Netflix makes quality content that is worth the price, the negative user response should start to dissipate.
Source: Various (See tweets above)