Netflix finally has brought up the issue of individuals sharing passwords with each other and could very soon ban 100 million accounts in just a matter of few weeks. Netflix will launch a crackdown on password sharing in the coming months and will ban all accounts that are being shared across multiple households.
If someone wishes to share accounts, they will be forced to pay an additional fee. The warning from Netflix has confirmed the crackdown will begin in the first quarter of the year – either February or March.
“While our terms of use limit the use of Netflix to a household, we recognize this is a change for members who share their account more broadly,” Netflix said in its report to shareholders. “As we roll out paid sharing, members in many countries will also have the option to pay extra if they want to share Netflix with people they don’t live with. As is the case today, all members will be able to watch while traveling, whether on a TV or mobile device.”
“As we work through this transition – and as some borrowers stop watching either because they don’t convert to extra members or full paying accounts – near-term engagement, as measured by third parties, like Nielsen’s The Gauge, could be negatively impacted,” the statement said. “However, we believe the pattern will be similar to what we’ve seen in Latin America, with engagement growing over time as we continue to deliver a great slate of programming and borrowers sign-up for their own accounts.”
“Later in Q1, we expect to start rolling out paid sharing more broadly,” Netflix’s report reads. Netflix has said that the practice of account sharing “undermines our long-term ability to invest in and improve Netflix, as well as build our business.”
It is unclear, though, how, or even when exactly the streaming service will enforce the policy beyond pushing for the paid sharing option.