netflix crackdown
Tuesday, May 23, 2023
netflix crackdown
Netflix's password-sharing crackdown is now starting to roll out to subscribers in the US and other markets, following a delayed launch. The streamer originally planned to introduce "paid sharing" to US subscribers in the first quarter of this year, but pushed back the start date to the summer, after noticing cancellations in other regions. The market where it launched changed. Under the new rules, US subscribers will have to remove people from their Netflix accounts or pay $7.99/month for additional subscriptions for people not in their primary household.
The Company provides tools to make this transition easier, including ways for existing subscribers to see which devices have logged into their account and remove those that are not. permissions as well as tools to reset their passwords.
For those who are sharing someone else's Netflix account, they can switch to their account via the "Transfer Profile" option which will help them migrate existing account information, including calendar their viewing history and watchlist.
The feature has been met with a lot of backlash from consumers, but Netflix assured investors that despite some initial setbacks, they believe password cracking will benefit investors. the long-term growth of the company and its financial health. For example, in his first-quarter results, Netflix co-CEO Greg Peters said the results of password cracking in the first supported markets closely resembled subscriber response to price increase.
Netflix first started testing the feature in Latin American markets before expanding access to Canada, New Zealand, Portugal and Spain earlier this year.
"We're seeing initial cancellations and then we're leveraging it, both in terms of memberships and revenue, as borrowers sign up for their own Netflix accounts and existing members buy this membership package for the people they want to share it with,' Peters told investors on the earnings call. "So, first and foremost, it's a strong confirmation to see consistent results across multiple platforms. this new country, because those are different market characteristics and also different from the countries of origin that deploy in Latin America,” he added.
For the first quarter, the company reported a net increase of 1.75 million global subscribers for the quarter, falling below Wall Street estimates of 3 million for a total of 232.5 million accounts across Around the world.
He also shared in the earnings report that he plans to roll out the password sharing changes to US subscribers no later than June 30. share their Netflix accounts.
“Netflix accounts are for one household use only,” the company warned. “Everyone living in this household can use Netflix wherever they are — at home, on the go, on vacation — and enjoy new features like Profile Transfer and Access Management and equipment,” the post reads. .
The email itself, titled "Update on sharing," details only available options and directs members to additional help documentation, if needed.
Although previous tests have shown that Netflix can recover from password cracking, Netflix has yet to see the results of this action in its largest and most important market, the United States. , where Netflix faces increasing competition for users' time and money.
The timing of the launch announcement is remarkable, as today HBO Max has transformed into Max, a new service that combines HBO and Discovery+ content under one roof. Next month, on June 27, Paramount+ will also add Showtime to its service.