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The Netflix crackdown on password sharing in the U.S. is prompting complaints on social media as some analysts question whether the move is worth it for the streaming giant.
“I can see it’s kind of a dilemma from Netflix’s perspective. They’re pretty saturated here in the North American market. They really need to find a new way to monetize people who don’t have a Netflix subscription and there’s a significant overlap, apparently, between people who don’t have that subscription and people who are watching anyway,” said Stephen Lovely, co-founder of cordcutting.com.
“I think the hope is by cracking down, they can turn some of those people that they boot off into reluctant paying customers. But of course, the flip side is the people who maybe are deliberately sharing their account and see it as a way of getting a discount, might not want to pay the full freight for just their individual streaming account.”
To combat password sharing, Netflix is limiting U.S. viewership of its programming to people living in the same household. As the crackdown rolls out, those who subscribe to Netflix’s standard or premium plans — which cost $15.50 to $20 per month — will be able to allow another person living outside their household to use their password for an additional $8 per month, a $2 discount from the company’s basic plan.
Without providing details on how it authenticates subscriber identities or accounts, Netflix assured that everyone living in the same household of a U.S. customer will still be able to stream TV series and movies “wherever they are — at home, on the go, on holiday.” The company based in Los Gatos, California has roughly 70 million U.S. account holders.
Cordcutting.com surveyed nearly 1500 Netflix users and only 8 percent of those who use other people’s accounts said they would pay for their own Netflix accounts. Twenty-three percent of subscribers said they would cancel their subscriptions due to the crackdown, and another 5 percent responded that they would pay for additional users.
This article was provided by The Associated Press.