With a looming deadline set by Netflix for its crackdown on users who share their passwords with others outside their household, the company is now cautioning UK internet providers about the potential backlash they may face. The Financial Times reports that Netflix is advising broadband companies, which include Netflix access in their monthly subscription bundles, to prepare for customer complaints and inquiries regarding this decision.
Many users will be caught off guard, as they will only become aware of the change when Netflix prompts them to select a “home” address and starts charging an additional fee for sharing passwords with individuals in different locations.
The exact fees for the US and UK are not yet known, as Netflix has been adjusting them based on the country. It has been stated that charges will be higher in more economically prosperous countries.
For instance, in Spain, the fee is €5.99 (~$6.48 / A$9.75), while in Portugal, it is €3.99 ($4.32 / ~A$6.50). Although it tested $2.99 in the US at one point, this has not been confirmed.
Naturally, Netflix is wise to warn broadband providers about the potential consequences. It is one thing for the cost of a service to increase, but it is another matter entirely when an existing option is taken away and then sold back to users as a paid upgrade.
Moreover, individuals may soon come to discover that not only has the value of their Netflix subscription diminished, but also the value of their entire internet subscription.
The fact that Netflix is warning broadband providers indicates its confidence in weathering the storm caused by the password-sharing clampdown. It suggests that the company believes the long-term benefits of implementing these new rules outweigh the potential drawbacks.
Netflix acknowledges that there will be numerous cancellations once the change takes effect but believes that the departing users will eventually return. Netflix deems the change to be financially advantageous.
Nevertheless, it is hard to understand why Netflix’s motive or what they would accomplish by doing such a thing considering that Netflix continues to upset fans by canceling well-received shows after just one season. The actual matter is not in users canceling their subscriptions over a single issue but rather this being the final nail in the coffin.
Furthermore, the larger worry is that other popular streaming services may follow Netflix’s lead, resulting in significantly higher costs for consumers, rather than just a small additional charge from one provider. In that scenario, a wave of cancellations is highly likely.
Regardless, if you currently rely on someone else’s password for your Netflix access, it would be wise to promptly binge-watch the best Netflix movies and shows.
