Netflix Password Sharing Crackdown | Why is Netflix Losing Its Subscribers

Using your ex’s Netflix password? This news is going to devastate you!

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Daksha Gupta
Daksha Gupta
A big time introvert. Daksha is a shy and socially awkward person. She is a full time dog lover and half time human. She finds her comfort in simple artistic expressions. Her love for art, dance, and writing transcends her into another world.

Have you opened your Twitter today? Yes? You must have seen Netflix trending everywhere then! Why is that? Netflix is trending everywhere because of an announcement it made. Netflix plans to crack down on password sharing. If you are wondering, ‘what does the Netflix password sharing crackdown mean, and why should I worry about it?’ If you are using someone else’s Netflix account, you should worry about this!

Netflix is an American subscription and production company. It is one of the first OTT platforms. It gained popularity during the Covid pandemic. Many people used the quarantine time to binge-watch movies and series of their choice. Netflix provided people entertainment at a time when they needed it the most. This increased its userbase. 

Why is Netflix Losing More and More...
Why is Netflix Losing More and More Subscribers?

One thing is common between all human beings- our love for freebies! If I give you the option of using a free account for streaming your favorite shows, would you deny it? Never! This is what has happened with Netflix. A large number of people are sharing their Netflix passwords. Netflix was okay with this at first, but not anymore. Scroll down to find out what this ‘Netflix cracking down on shared passwords’ fiasco is all about.

Netflix Password Sharing Crackdown | Why is it in News?

Netflix Password Sharing Crackdown | Why is Netflix Losing Its Subscribers

When you launch the Netflix app, the first thing that appears on your screen is “Who’s Watching?” Let’s be honest! This “Who’s Watching” can be anyone who knows your Netflix password- your ex-boyfriend, friends, and friends’ friend! Or it could be you using someone else’s Netflix. Am I right!?

Earlier Netflix did not have a problem with this, my friends, but now they do! Netflix has incurred a massive loss of 200,000 paid subscribers in the first quarter of this year. This is the first time in a decade that Netflix has lost such a massive number of subscribers. Not only this, but there is a prediction that the streaming platform will lose around 2 million subscribers in the next quarter. 

Netflix has also estimated that more than 100 million households use the same password worldwide. There is also an estimate that 30 million US and Canadian households use a shared password. Speaking of such huge numbers does not seem to be a stretch because we know there is a great possibility for this to be the truth. Wink! Wink! 

So how is Netflix Planning to tackle this problem? Scroll down to find out!

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How is Netflix Planning to Crackdown Password Sharing?

“We love people sharing Netflix…..That’s a positive thing, not a negative thing.”- CEO Hastings (2016)

Netflix has admitted that previously it allowed people to use a shared Netflix. This is because it fuelled the growth of Netflix by hooking people up on the platform. 

Sharing likely helped fuel our growth by getting more people using and enjoying Netflix,” the company said. “And we’ve always tried to make sharing within a member’s household easy, with features like profiles and multiple streams.”

Remember, Netflix liked people sharing passwords when it was making a profit. Now, the times have changed, and so has their attitude. Who can blame them?! It has to focus on profit!

A major reason for such a downfall in Netflix’s subscribers is said to be shared passwords. This has led the company to take some major decisions. Netflix announced on Wednesday that it would crack down on people sharing passwords. A major step to curb the practice of password sharing will be to charge users to share passwords. Netflix will not ban password sharing. However, if you want to share a Netflix account, you will have to pay extra charges. Yes, you read that right!

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Netflix has already started testing this strategy in three Central and South American countries. The companies in the said experiment are Chile, Costa Rica, and Peru. Here is how much will be charged for adding up to two profiles on your Netflix:

Chile: 2380 Chilean pesos

Costa Rica: 2.99 US dollars

Peru: 7.9 Peruvian sol

Netflix will be rolling out this payment model in other countries soon. Netflix has not given any concrete timeline, but the changes can be brought in as early as 2023.

Note: The charges stated above are additional to the subscription amount. 

Netflix Password Sharing Crackdown | Questions Left Unanswered

Netflix password sharing crackdown

Netflix is streamed all around the world. It would be difficult for Netflix to crackdown everyone with shared passwords. This time Netflix seems pretty serious about its warning of cracking down on password sharing. However, there are a lot of questions still left unanswered:

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1. How will Netflix Prevent Password Sharing?

Netflix is all over the news for announcing that it will be cracking down on password sharing. However, there are no specifics or details of how this crackdown will be implemented. It has been reported that Netflix will use ‘IP addresses, device IDs, and other information.’ This will allow Netflix to know if the account is being used outside the user’s home. 

This takes us to our next question.

2. How will Netflix Distinguish Password Sharing From Travelling?

As of now, we know that Netflix is okay with the family members using the same account. However, it will keep a check on a user’s ID being used outside of their home. This seems like Netflix has not taken into account traveling or remote users. What if you are using your paid subscription when you are out for a vacation. Will Netflix consider that as password sharing?

3. How will the Netflix Activation Process Change?

Another important question Netflix leaves unanswered is – how will the crackdown on password sharing affect the activation, sign-up, and login process. Will the process change? Will there be some strict authentication prompts? 

4. How Much will Netflix Password Sharing Cost?

Netflix has not specified how much extra a user will have to pay for adding an extra member to their account. If we look at the tests being done in Costa Rica, Chile and Peru, we can assume that the ‘Extra Member’ subscription can be anywhere between $2 to $3 per month. However, we still haven’t heard anything official about the subscription cost.

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Why is Netflix Losing its Subscribers?

There are a lot of reasons for Netflix to lose its subscribers. Netflix is pinging everything on password sharing. Let us look at the other reasons why Netflix may be losing its followers:

Netflix password sharing crackdown

1. Password Sharing

One major reason for Netflix to lose its subscribers is password sharing. Many people opt out of Netflix since they can view the content from someone else’s account. Netflix says over a million households worldwide use shared passwords. This reduces the company’s profit. 

2. Other Competitors

Netflix has to crack down the password sharing because of its rising competition. The days when Netflix was the biggest content platform are long gone. Netflix was okay with the users sharing passwords until it was on the top. Now, competitors like Amazon, Disney, Hulu, etc. and pouring in money to raise their content. Netflix has to focus on cracking down on shared passwords in such a situation.

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3. High Prices

Netflix is a premium content platform. However, their subscription fee is high compared to other OTT platforms. The basic and standard plans that used to cost $9 and $14 respectively were raised to $10 and $15.50 respectively in the US. A major chunk of households has canceled their subscription because of the high pricing.

This also brings us to wonder, doesn’t Netlfix know that their content is available on many free websites. People will keep shifting to other platforms if they keep increasing the prices.

4. Netflix Left Russia

Netflix pulled out of Russia in response to the Ukraine war. A big country like Russia provides a large userbase. When Netflix decided to pull out of Russia, it should have considered losing a massive number of subscribers.

5. Lack of Content

I am not saying that Netflix has bad content. It has released mass hits like Bridgerton, Narcos, Money Heist, and more. However, recently its content is not at par with other platforms. There is a lot of competition among these platforms. A viewer will go for a platform that provides the best content. This can also be a reason why Netflix is losing so many subscribers.

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Netflix to Crackdown Password Sharing

Wrapping Up 

It is time to wrap up! Netflix has announced its crackdown on password sharing, leading to a massive Twitter outburst. People all over the internet are hilariously coping with this news. It is yet to know if Netflix will go forward with this sharing password crackdown or not. 

If you are using someone else’s Netflix, I have some advice for you. Go binge on all your favorite Netflix shows before it’s too late!

I hope you found this article useful. Let me know whose Netflix account you are using in the comments below.

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