Business & Finance
Netflix is Beginning to Rein in Account Sharing—Here’s What you Should be Aware of
Netflix has been a staple of entertainment since it launched in 1997. What started as a DVD mail-rental service has evolved into one of the most popular streaming services online, boasting an ever-growing number of subscribers. In Q4 alone, Netflix saw 7.4 million new accounts created – an impressive figure that speaks to its success as a company.
However, Netflix is now making strides to crack down on account sharing among its users, which goes against its terms and conditions. Account sharing is common practice for families or friends who live in different households and split the cost of the subscription fee by using the same account.
In response, Netflix plans to roll out changes that will make account sharing impossible in April 2023. However, they are also introducing an extra fee option that allows families or friends to keep the same account and have access to their profiles from multiple devices. The company has yet to release the details of this new fee.
The news of Netflix’s crackdown on account sharing has caused worries amongst some subscribers regarding their watching habits; people often use multiple devices (e.g., televisions, phones) and utilize their accounts while traveling. To address these concerns, Netflix has reassured users that they will still be able to access their profiles from multiple devices – a feature that won’t be affected by the ban on account sharing.
It’s estimated that over 100 million households partake in Netflix account sharing, which may negatively impact business growth. And inhibit the company’s ability to invest in more original content for viewers’ entertainment needs and improve upon existing features such as user experience and streaming quality. According to Executive Chairman Ted Sarandos, they aim to make their content available at prices that won’t lead people to turn towards other accounts for assistance with sharing costs.
Netflix understands that these changes won’t be popular amongst many users but believe that they can help bring around more revenue for the company in the long run so that they can focus more funds on creating more original content like films and television shows and investing back into improving existing features like increasing streaming quality resolution or developing even better user experiences for viewers worldwide. Currently, roughly 50% of all content available on Netflix is original programming produced directly by them, with higher percentages added every month due to more investments and resources put towards creating amazing films and TV shows for everyone’s enjoyment.