Why Netflix’s Password-sharing Crackdown Won’t Do Much

Share post:

Netflix announced that it has begun testing a plan to let subscribers in three countries (Chile, Costa Rica and Peru) add accounts for up to two people outside their household for an added payment. This is part of a new strategy Netflix plans to use to restrict password sharing.

While the Netflix plan could force some subscribers to pay, others will not, and many may be forced to cancel their subscriptions or move to cheaper platforms.

Since many illegal Netflix users are now accustomed to accessing the platform’s videos for free, it may not be possible to dissuade them by paying the not-so-cheap new prices.

Netflix is undoubtedly suffering from rising inflation, which has increased costs. However, while Netflix faces an unfriendly economic climate, it is important to note that the company’s current problem with illegal streaming is the long-term consequences of an unsustainable business model.

Based on Netflix’s forecast, the company will lose an additional 2 million subscribers in the second quarter, equivalent to nearly 600,000 people who don’t believe the service is worth it.

The sources for this piece include an article in VARIETY.


Related articles

Is Oracle killing off MySQL?

Yesterday we covered a story about how Oracle was now cracking down on licensing Java, which started as...

Microsoft’s AI success may spell defeat for it’s climate goals

Microsoft's ambitious strides in AI technology are now posing a significant challenge to its own climate goals, as...

OpenAI’s Chief Scientist Ilya Sutskever Departs Company

Ilya Sutskever, co-founder and chief scientist of OpenAI, has officially announced his departure from the company. This move...

OpenAI snubs Microsoft, launching GPT-4o only on macOS

OpenAI, despite Microsoft's substantial $10 billion investment, has chosen to release its new ChatGPT app exclusively on macOS,...

Become a member

New, Relevant Tech Stories. Our article selection is done by industry professionals. Our writers summarize them to give you the key takeaways