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Netflix estimates that 100 million households are sharing passwords and suggests a global crackdown is coming.
(Photo: IANS)
The world’s largest streaming video company warned a global crackdown on password sharing is coming. It seems like a serious warning this time, and it could mean an end to the rampant practice of borrowing a family member’s or friend’s — or loose compatriot — login information. Netflix said it estimates more than 30 million U.S. and Canadian households are using a shared password to access its content. The company said more than 100 million additional households were likely using a shared password worldwide.
After Netflix announced the loss of subscribers for the first time in a decade, the Co-CEO Reed Hastings came forward with his new decision to overcome the setback he faced recently. The streaming platform in its latest statement announced that the company is soon going to introduce an ad-supported tier which would be a big change for the company. In a recent decision, the company said that the current password sharing option would soon be taken back in order to increase the subscriber’s number.
Although sharing the password helped more users to join the app, there occurred a dip in the number of subscribers and customers with usernames and passwords,” said the Co-CEO. Netflix has long been working to crack down on the password-sharing business. Last month, the streaming platform announced that users in Chile, Costa Rica, and Peru would have to pay extra to share accounts between families. According to the company, this strategy would soon be planned for other countries also to regain its subscribers.
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The CEO also said that the company is considering introducing cheaper plans in the coming days.
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