Netflix Password Sharing Ban is Doing Them More Harm Than Good

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Recently, Netflix has implemented changes regarding password sharing in the United States. The new policy states that each Netflix account should be limited to a single household, meaning that individuals residing in different households will be required to have their own Netflix account. Or arrange for payment through another account. This update aims to ensure that users are accessing the streaming service in accordance with the intended guidelines. It prevents individuals from freely sharing a Netflix password  to a lot of people.

Netflix is offering two options for users who want to share their Netflix account with someone outside of their household:

1. Transfer Profile: Someone on your account can have their own membership and pay for it themselves. They can transfer their profile to a new membership. This allows them to have their own individual subscription separate from the main account.

2. Share Account for $7.99 per month: Alternatively, you have the option to share your Netflix account with someone who doesn’t live in your vicinity. But you must subscribe to the “Netflix Account Sharing” plan. This option will cost you $7.99 per month. The person you’re sharing password with, can access Netflix  outside your location. However, this option is not available to all subscribers. Those who subscribed through someone else’s account and third-party services are not included.

With these, users can be able to share their Netflix account. They can do so without going against the company’s new policy.

CancelNetflix Hashtag Has Been Trending on Twitter Due to Netflix Password Sharing Ban

It appears that the decision by Netflix to crack down on password sharing has sparked some backlash on social media platforms like Twitter. The hashtag #CancelNetflix has been observed on several tweets. This indicates an increase in cancellations. However, it’s important to note that the end of password sharing is not the sole reason for these cancellations.

Why Some Users are Canceling Their Netflix Subscription, not All About Ban on Password Sharing

Some former subscribers have expressed dissatisfaction with the quality of Netflix’s original content. Others have also complained about the cancellation of specific original series that they were following. These factors, along with the change in the password sharing policy, have contributed to the discussions and decisions by some users to cancel their Netflix subscriptions.

It’s worth mentioning that user opinions and experiences can vary. The overall impact of these factors on Netflix’s subscriber base may vary as well.

I've been a subscriber for 10 years. I'm now married with kids and have homes in multiple countries. For this reason, I upgraded to Premium. Netflix used to be convenient, even if they were overpriced and had mediocre content. They just lost that edge. #CancelNetflix pic.twitter.com/1PkVlVHieB

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— Ben (@bennykins78) May 28, 2023

From all indications, Netflix was much aware that their new password sharing ban would have some consequences. However, the company felt that those who paid for others’ subscriptions could fill-in the gap.

The company also had plans of increasing their advertisements in order to bring back some gone subscribers.

On the other hand, the company is rather loosing some of its long lasting subscribers. This goes beyond just the ban on password sharing. Bad video quality and cancelation of original series also play important role here.

Netflix Plans to Report Revenue Growth After the Ban on Password Sharing

Earlier this year, the company made a statement regarding its new policy at an earning conference call. It said:

“From our experience in Latin America, we expect some cancel reaction in each market when we roll out paid sharing. This impacts near-term member growth. But as borrower households begin to activate their own standalone accounts and extra member accounts are added, we expect to see improved overall revenue. Which is our goal with all plan and pricing changes.”

According to this statement Netflix expects a short-term decrease in membership. However, it still expects a revenue growth at the end. This is mainly because those who lose access to the service will have to pay for their own service. Also, some households will pay for the service of others. The company might not get them all, but the extra payments will make up for the lost subscribers.

Why This Might Not Entirely Work

Netflix faces a lot of competitions from the likes of Amazon Video Prime, HBO, Disney Plus, Apple TV Plus and many more. All these platforms see Netflix is as direct competitor and are doing everything possible to lure some users from them.

To keep most of its subscribers from moving away to these other platforms, the company must give its subscribers what they want. If subscribers are going to pay for their own service, they must be paying because they know they will get what they want. Netflix must listen to the complains of subscribers even more. High quality videos, more interesting movies as well as bringing back some of the fans favorite movies can help the company stay in the competition.

According to Statita, the number of paid subscribers on Netflix by the first quarter of this year stood at 232.5 million. In the U.S alone, the number was 74.4 million. Within this same first quarter, the video streaming company reported a revenue of $8.162 billion. If the ban on password sharing was the right decision, a revenue growth is the only thing that will prove it.

Source / Via: PhoneArena