Is Netflix’s Password Sharing Solution Viable?
Netflix has more than 220 million customers around the world, and the streaming platform is available in 78 countries. It’s currently the most popular entertainment service in the world, but it now faces stiff competition from others like HBO Max and Disney+.
Around 100 million households on the planet share passwords on Netflix, and the company is now aiming to crack down on this. It plans to roll out new rules on who can use Netflix accounts.
User Identification Could be Best for Streaming Platforms
Recent news reported that Louisiana and some other states in the US are planning to start asking for user identification for adult websites. PIA’s blog highlights how this is a recipe for disaster, and it brings about various questions on how much information people should share online.
Up to this point, Netflix has eschewed going down the route of asking for identification from its users. This could be the most effective way to crack down on password sharing, but it would also lead to a high number of ethical questions.
An alternative to this could be the introduction of biometrics when logging on to the service. This would be a more effective solution as it wouldn’t require users to share any personal information. However, it may be a few years before technology like this becomes widespread enough for it to work as an authentication method for Netflix.
Netflix Users May be Unhappy With New Rules
Password sharing is clearly a problem for Netflix, which is why the company has decided to implement new rules. According to CNBC, users will soon be asked to set a primary location for their account. They would then be asked to pay extra monthly fees for any users accessing it outside of that location.
Reports have suggested that Netflix users could be unhappy with the platform when this comes into play. Indeed, there’s a strong chance that many will head over to rival services. This is because the likes of Hulu and Amazon offer cheaper plans.
In a report from CNET, it is clear that many users of streaming services have strategies to cut costs. With the monthly price of Netflix set to go up for people who can no longer share, they may turn to alternative methods of viewing the content. This can include bingeing the series they want to watch and then cancelling the account until another show the like comes along.
What are Other Streaming Services Doing?
In the cutthroat streaming wars, each of the biggest companies has its own idea about this password-sharing issue. Some services like Amazon and Apple TV+ have been secure from the get-go, with users of the latter having to log on with their Apple ID. Others may be waiting to see how things go for Netflix before planning their own moves.
HBO Max, for example, has no restrictions on password sharing. Its strategy may be to rely on its high-quality programming to keep viewers. It also strategically drops a new episode of its flagship shows like The Last of Us and Succession each week, encouraging users to pay for continued membership.
Time will tell whether Netflix’s new password rules will be successful. However, the initial reaction to the news isn’t good. Indeed, this could lead many users to turn to rival streaming services and Netflix could lose its grip on the market.
