Netflix explains that password protection plans its testing to limit users who share their accounts outside their household.
Netflix is investigating non-aggressive ways to limit the number of households sharing accounts.
Netflix co-CEO and co-founder Reed Hastings told investors today that the streaming giant is looking for ways to limit the number of households that can access a single account. Stressing that any such decision will be handled with care, Hasting’s said any plans to counter the abuse of the company’s terms and services must feel natural to both the company and users. “I have to feel that it makes sense for consumers, that they understand,” Hastings said.
Although it is against the site’s terms and service agreements, it is generally accepted that many people share their Netflix account information. In a recent survey of a thousand adults conducted through Bank of America, 26% of people said they shared their password with another household.
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One method currently being tested to limit the number of people who can access an account involves a verification system in which users must confirm their information via email or text. This is a small step designed to ensure that people who use Netflix accounts are allowed to do so, but can be bypassed with a simple “Check Later” option.
The decision to further investigate how to limit sharing accounts comes from behind the streaming giant’s Q1 reports, which failed to predict. Netflix gained only 4 million subscribers worldwide, although they hoped to gain 6 million new users. In the 4th quarter of 2020, Netflix gained about 8.5 million subscribers, while in the first quarter of 2020, it gained almost 16 million subscribers.
Subscribers are key to helping balance books for Netflix. The company plans to spend $ 17 billion on content for next year. Netflix has a series of big ticket projects coming soon, with adaptation by Mark Millar and Frank Quitely Jupiter’s legacy and Zack Snyder Army of the Dead hitting the platform in May. Beyond that, they also have TV series based on Milk tooth, Sandman, and the long-awaited live action Cowboy Bebop show. Netflix is currently the leading provider of high-margin online streaming, despite the introduction of competitors such as Disney +, Peacock and Paramount +. Netflix considers its biggest competitor to be live television, followed by YouTube.
Source: variety
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