Analysts See Problems For Netflix Because It Restricts Password Sharing

Mar 17, 2021 App News

Analysts See Problems For Netflix Because It Restricts Password Sharing

Netflix has reportedly been working on new features for its platform. This feature's purpose is to restrict users from sharing account passwords and force non-paying viewers to subscribe. A Netflix spokesman said: "The purpose of this design is to ensure that users are allowed to use Netflix accounts".


Here's what Wall Street has to say about this. "How many people will become paid users?" Analysts believe that Netflix may face problems with this new rule. The level of uncertainty is very high, and Netflix's competitors are watching and competing for users.

Of course, we don't expect Netflix to continue growing after the pandemic. As more people get vaccines, they will resume normal activities, and blocking password sharing will hurt Netflix's negotiating power.

How many people share accounts with strangers (people outside the family)? What is the ratio? These issues deserve attention. The think tank Bloomberg estimates that there are 74 million Netflix users in the United States, of which about 29-30% share accounts, while Magid forecasts that this share is about a third.

Exchanging passwords on Netflix is quite common.

Netflix's terms of use prohibit users from sharing passwords with people outside the home, but many people still do. In 2020, Netflix CEO Greg Peters told The Wall Street Journal that Netflix would control password sharing.

Your streaming service provider also has a limit on the number of devices that can play streaming content at one time. The base package of $ 8.99 limits playback on one device, while the $ 13.99 package allows playback on two devices. The $ 17.99 package will enable you to play up to four devices.

There are always terms and conditions for streaming platforms for multiple profiles. These terms tend to limit the profile of people in the same household. Services such as Netflix, HBO Go, Amazon Prime, and Disney + have such services.

Back in 2016, Hastings said: "Sharing passwords is something you need to learn to live with, because there is as much legal sharing of passwords as you share with your spouse, with your children, so there is no bright line, and in we are all as good as we are".

However, as of 2019, the company has already considered the issue of password sharing. Then there were no big plans to announce something new. The streaming service provider now has more than 200 million subscribers worldwide. In 2020 alone, it received about 27 million new subscribers.

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