Who doesn’t like a good binge-watching session? Some good old Netflix and chill never hurt anybody after all. Netflix is great, they have the best original content, great features, and a vast library, so what’s not to love? However, despite all the great things Netflix has to offer, you may be doing something which is making executives over at the company very, very upset indeed. This is one of the most common and regular practices in the world today, and that is the trend of password sharing. If you’ve ever watched Netflix, you fall into one of two categories. First, someone who legitimately paid for the service, in which case, one of your friends or family members has asked you for your password. Or two, you yourself mooched a password off a friend or family member, in either case, you definitely have been in one of these situations before.
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What is Netflix?
This question is one which is asked by absolutely nobody ever. Netflix is the wildly popular global streaming service, which is actually much older than you may think, dating back to over a decade ago now. Netflix has always been the leader in this marketplace, which is not to say that they have not been contested here. For example, some of their current competition includes Amazon Prime, Hotstar Premium, and a host of other streaming services which are starting to saturate the market. However, thanks to the age of Netflix, they do possess somewhat of a first mover advantage. A lot of people held Netflix accounts far before any of these other competitors, which is what makes Netflix such a successfully lucrative business.
Why is Password Sharing a Problem?
This is a huge issue since a massive margin of Netflix’s profit is being eaten up by users who pass around their passwords. Let’s assume that of every 2 people that use Netflix, only 1 pays for the account. This means that by implementing some kind of countermeasure against password sharing, Netflix can theoretically double their market share. Not to mention, this is an unhealthy practice since a basic Netflix subscription is only really meant for one person, not to be used by an entire family, or group of friends, which most of the times, is how the app is used today.
How Will Netflix Combat This?
Well, presently, there is really no way to know how this will be dealt with. However, limiting the amount of concurrent viewers could be a big hit in this department. Only having one login active at a time might hurt sharers, but there’s no doubt it wouldn’t kill the problem. Another is the much dreaded only one system per payment, which would reduce the base price of the payment, but make you pay a nominal fee for every additional device you link onto one account, which is sure to screw all those who share accounts. The downside being, it may also screw paying, loyal customers. It remains to be seen what Netflix will do, but we hope it won’t be an anti-consumer move.