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Recently, it was reported that Netflix was cracking down on users sharing accounts. The company is testing a tool to verify if users are in the same household, offering to send verification codes to confirm that they live with the account owner.
But taking a tougher stance on account sharing won’t do Netflix a favor. If anything, it’s another decision that will do little more than anger active subscribers.
Naturally, this is also used to encourage people to create their own Netflix accounts. The streaming service even goes so far as to offer a 30-day free trial, which Netflix stopped offering in the United States last October.
Account sharing has always been a gray area
Account sharing has long been seen as an advantage of streaming. Many services, Netflix included, offer individual user profiles and the ability to on multiple devices at the same time. Distributing the cost among friends and family also means that you can share the cost. With Netflix’s prices rising fairly steadily, it can ease the blow of having to pay an additional $ 1 to $ 2 each month.
In fact, in 2016, Netflix co-CEO Reed Hastings said account sharing was “a positive thing.” Although his comments seemed more focused on the fact that account sharing was a great marketing tool. would make an individual more likely to subscribe to Netflix on their own. It is clear that the company is starting to take more proactive steps to speed up this process.
Account sharing is technically against Netflix’s Terms of Service. Section 4.2 states that “The Netflix Service and any content viewed through the Service is for your personal, non-commercial use only and may not be shared with anyone outside of your household”.
But has anyone really read the terms of service all along? We are all guilty of accepting the Terms of Service without even pretending to read them. Plus, who has time to read over 2,500 words of legal jargon when they just want to sit back and watch The Crown?
Netflix frequently makes decisions like this
It’s not clear whether account sharing can make people sign up for Netflix for the privilege of using their own account. But actively targeting users who share passwords, especially after tolerating them for nearly a decade, will do Netflix’s reputation a disservice.
We have seen the company make a series of unpopular decisions over the years. This includes the crackdown on VPN users, which allow people to watch content from other countries, the removal of the 30-day free trial, as well as the almost constant price hikes. Not to mention, Netflix tends to cancel big shows after their second or third season.
There is no one scenario in which taking an active stance against account sharing works well for Netflix. It’s obvious why Netflix is making these decisions, and the word begins with “D” and ends with “dollars”. Shows are canceled because they do not attract subscribers. Prices go up because subscription fees are the only way to make money. VPN usage suffers from a crackdown because rights holders don’t like people seeing content on Netflix in areas where Netflix is not allowed to show.
It’s the same with account sharing. It’s against the rules, and obviously sharing accounts with people outside your household in theory affects Netflix’s bottom line. Assuming everyone who shares an account would pay for their own subscription. Some would, some would not. It is impossible to say how these situations would unfold.
This verification system already has flaws
Netflix says it’s only testing this system, which suggests it’s not a permanent feature. Not yet anyway. Which is good, because we can already see inherent flaws in the system, even for people who live in the same household.
Having been the “principal” on a shared Netflix account, I know that each account is only linked to one person’s details. Let’s say there is a false positive and a teen has to prove that they are authorized to use that particular Netflix account. The verification code is sent to a parent, who must then pass it on to their child.
It’s fine if the parent is on hand and able to do it at all times, but what if it isn’t? Suddenly someone is punished for account sharing which is totally acceptable under Netflix’s own rules.
Of course, we don’t know how Netflix is going to try to detect account sharing. We’ve already speculated that it could be a tool to flag when account users have too different IP addresses, which would make sense. But we don’t know for sure and we don’t know the criteria by which Netflix might judge users.
Much like Netflix’s viewing metrics, it’s all a bit of a mystery and quiet at the moment.
At the end of the line
We understand why Netflix is doing this, but that doesn’t mean we have to like it. Especially given this sudden shift in priorities. We can only assume that Netflix realized how many people share an account and got scared, or thought it was now so big that people would end up paying for their own account when prompted.
The prompts could work, and that would benefit Netflix. But what is the advantage for Netflix users? Perhaps the next price hike could be delayed for a few months, provided this new system is working properly. But we’re not going to see that happen for a while.
For now, cracking down on account sharing is just one sure-fire way to irritate your customers. And when customers are too irritated, they get off the ship. It’s the last thing Netflix wants.
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