NO  more sharing is caring? 

Some Filipino consumers have expressed their dismay over video streaming platform Netflix’ move to end the sharing of accounts.

Netflix will start charging accounts for paid sharing before April this year.

According to the streaming platform, the policy is most likely to be similar to what it implemented in Latin America where users pay an extra $3 for paid sharing.

Gabrielle Dela Cruz, 23, a Netflix subscriber, said that limiting the ability for users to share accounts will lead to consumers debating whether or not paying for a Netflix subscription is “worthwhile.”

“I personally have a monthly plan and find pleasure whenever my family or friends borrow my account because I feel like I get more out of what I pay for,” Dela Cruz said.

Competition

Netflix will crack down on password sharing because it affects the company’s revenue.

It also noted that the company is facing a lot of  competition. In a letter addressed to stakeholders, the video streaming giant said the market has become extremely competitive since consumers have so many entertainment options. 

It is competing for viewers’ attention with other streaming sites as well as gaming, linear TV, YouTube, and short-form entertainment like TikTok, it noted.

It also said it expects some “cancel reaction” when it rolls out paid sharing, which will affect near term member growth. But it said it expects revenue to improve overall as borrower households activate their own accounts and add extra member accounts. 

Decreasing value

But Dela Cruz said the new Netflix policy could turn off subscribers. 

“The new policy could potentially decrease not only the value of Netflix’s profit but also the value that it brings to users as a platform,”  she noted.

Meanwhile, Jessica Sta. Maria, another subscriber of the streaming platform, said that she partly agrees and disagrees with the move.

“Legally, it’s wrong to share passwords because after all, business is business. But just like pirated CDs, it gives us access to content for a broader audience which makes using your Netflix account worthy,” Sta. Maria said.

She also said the move is somehow “restrictive” especially for low-income families in countries like the Philippines who just want to access quality media. It would also affect Netflix’s content since there will be a possibility of  “less access, less impact.”

The terms of service of the streaming corporation now stipulate that only subscribers living in the same household may share a Netflix account. 

How will password-sharing be detected?

Under the new policy, users will be refused access if Netflix determines  through the IP address, device identifiers, and account behavior that the subscription is being used by individuals who do not reside within the same household. They will have to set up their own accounts in order to watch Netflix. 

If a member of the same household who is authorized to access the account connects from a different network or from a device outside the house, they will be prompted to confirm their identity.

This is not the first time Netflix has cracked down on the sharing of passwords among its users. In March, the streaming platform giant launched a trial in Chile, Costa Rica, and Peru where users were asked to pay extra if they shared their account passwords with others outside of their households. 

Canceled after backlash

In October 2022, the firm stopped the paid sharing plan in Latin America, specifically in Argentina, El Salvador, Guatemala, Honduras, and the Dominican Republic, after facing backlash on social media and after users ended their subscription to the platform  due to the rollout of the ban on password-sharing