Earlier this year, Netflix announced intentions to charge customers who disclose their account credentials with other users an extra cost. In response to this news, the platform has implemented a new password-sharing policy in Costa Rica, Peru, and Chile. According to a report from Rest of World, Netflix will test the revised policy in these locations before implementing it in its big countries. Continue reading to learn more about Netflix’s updated password-sharing policy and who is breaking it.
Netflix’s new policy is conservative.
According to Paul Erickson, a Park Associates streaming industry analyst, Netflix is not testing the new password-sharing policy in its main streaming regions, including Mexico and Brazil. Erickson emphasized that Netflix implemented the new policy in countries outside of its ‘big markets’ to avoid losing users’ goodwill. Netflix is implementing one of its regulations in the aforementioned locations, which specifies that password sharing is only permitted with those with whom the user resides.
The platform imposed costs for password sharing.
Chengyi Long, Netflix’s director of product innovation, stated in a blog post in March, ‘With features like separate accounts and multiple streams in our Standard and Premium plans, we’ve always made it simple for individuals who live together to share their Netflix account. While they have been extremely popular, they have also caused some misunderstanding around when and how Netflix may be accessed. As a result, accounts are being shared across families, limiting our capacity to invest in exciting new television and films for our subscribers’.
Is Netflix losing customers?
As a result, the price for sharing Netflix credentials was unsurprising. However, the fact that Netflix is losing members while testing the extra price for password sharing cannot be overlooked. According to The Verge, Netflix slashed more than 200,000 customers in the first quarter of 2022. This is the first time in a decade that the content streaming site has lost users. Furthermore, the site anticipates losing another two million customers in the following months.
There is a significant risk that paying Netflix members may terminate their subscriptions in the near future if the platform begins charging a price for sharing the password to their account with their friends. It is worth noting that some other streaming services, like Hulu and Peacock, are more reasonable for residents of the United States and Canada, where Netflix has more than 70 million paying users.
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