Video streaming platform, Netflix has launched its campaign in the U.S to crack down on password sharing. The launch which was delayed for a bit, has now begun in the U.S. subscribers and other global markets.
Netflix had initially planned to introduce “paid sharing” to U.S subscribers earlier this year but decided to move the date forward to October due to the negative feedback, the idea generated in the markets where it had already been launched.According to the new rules laid down by the streaming company, U.S subscribers will have to pay $7.99 per month if they wish to have additional membership on their Netflix account for people outside their main household or kick users sharing their Netflix account.
These changes are also expected to take effect in other global markets in the coming weeks and months.
Netflix hopes to make it easier for the subscriber to comply with the new changes by providing a way in which subscribers can view which devices are also signed into their account, so they can remove them as well as an option to reset their passwords.
While for those sharing Netflix accounts with paid subscribers, Netflix also provided an option to make a transition, so they can have an account of their own with the “Transfer Profile” option. This allows them to move their existing account information as well as view history and watchlist.
Although this move has generated negative responses among its customer, Netflix remains optimistic that the “password crackdown” operation will yield benefits in the long-term growth of the company.
Netflix co-CEO Greg Peters described the reaction of Netflix users to the password crackdown as the response of subscribers to a price increase, during its first-quarter earnings.
Peters said “We see an initial cancel reaction and then we build out of that, both in terms of membership and revenue as borrowers sign up for their own Netflix accounts and existing members purchase that extra member facility for folks that they want to share with,”
He added, “So, first of all, it was a strong validation to see consistent results in these new countries, because there are different market characteristics different from each other and also different from the original Latin American rollout countries,”.
Netflix had initially tested the password crackdown feature in Latin American markets first before expanding its operations to Canada, New Zealand, Portugal, and Spain, earlier this year. Today’s launch will also see the password crackdown expand its reach to other global markets including Brazil, Bolivia, Belize, France, Germany, Iceland, Ireland, Italy, the Philippines, Malaysia, Israel, Thailand, Taiwan, Switzerland, Sweden, and others.
Netflix also announced in a blog post that it is sending out emails to its subscriber in the U.S. who are sharing their Netflix account.
It says in its post “A Netflix account is for use by one household,” the company admonishes. “Everyone living in that household can use Netflix wherever they are — at home, on the go, on holiday — and take advantage of new features like Transfer Profile and Manage Access and Devices,”
The email which is titled “An update on sharing,” is only aimed at informing subscribers of the available options on Netflix, providing necessary information which could help in documenting users if need be.
Netflix also clarified in the email which was addressed to the press that it’s “now starting to roll out updates to sharing to countries around the world, including the U.S.”
Although earlier tests have indicated that Netflix would cancel its plans for a “password crackdown” due to the fact that it has not recorded significant results but it has yet to test the operation in its largest and most significant market which is the U.S, where there is heavy competition for users’ time and money.
