Netflix Knows There’s Going To Be Backlash Over Password Sharing Crackdown And Is Warning Companies About It
It’s safe to say people are not thrilled about Netflix’s crackdown on password sharing. When the rules were announced about Netflix’s password situation, subscribers were not pleased, and things might get worse. Now, with the streamer set to implement these new guidelines in the United States and the United Kingdom companies who offer bundles with the company are being warned that they should expect some backlash when the initiative officially rolls out.
Netflix will reportedly put this initiative in place by asking customers to set a primary location. This means people who live within a given household can use the same account. However, if an account has someone outside that primary location using Netflix, the account holder will be emailed about it and the “interstitials” related to it. This notification system will be used in all major markets, including the United States and the UK, and backlash is expected, the Financial Times reported.
The report explained that telecoms groups that partner with Netflix to sell bundled TV content have been meeting with the streamer. This includes UK companies specifically like Sky, Virgin Media, TalkTalk and BT. They bundle their TV content with broadband, and have reportedly been talking about these emails Netflix will send out, and should be aware that they could receive complaints from customers.
Unsurprisingly, people have not been happy about this crackdown. As the streamer rolled out the password-sharing plan in Canada, New Zealand, Spain and Portugal it was met with a “cancel reaction,” and the company saw less growth in subscriptions. However, after that first drop-off Netflix saw people adding an extra member to their accounts, and that boost led the company to feel assured that they were taking “the right approach,” the report claims.
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When it comes to how this plan will be rolled out, Netflix has been testing different ways to restrict password sharing, one of which could make a dent in some wallets. About a year ago, the company was charging subscribers to add a sub-member to a profile, which meant they could still be under the same account and bill, but would have their own log-in information.
Then Netflix’s password-sharing rules evolved, and as it was tested in Canada, New Zealand, Spain and Portugal, they started asking those with a Netflix subscription to set a primary location. Netflix also launched a profile transfer tool that will help users carry over their profile if they choose to create their own accounts.
Ever since Netflix started to consider a crackdown on password sharing subscribers have not been supportive of it. Possibly losing access to Netflix’s best shows, like Stranger Things, Bridgerton, Squid Game and more is not fun to think about, and many people don’t want to have to create a new account and spend more money on streaming. So, as the password-sharing crackdown gets closer to impacting users in the United States and UK it makes sense that the streamer is preparing other companies for backlash.
