This archive report was first published on 22 October 2019.
As the world becomes increasingly digital, it's not uncommon for people to share their Netflix passwords with friends and family. However, this practice has been costing the paid streaming industry billions of dollars, with Synamedia estimating that $9.9 billion of pay-tv revenues and $1.2 billion of OTT revenues will be lost to credentials sharing in 2021.
Speaking at Netflix's Q3 2019 earnings interview, chief product officer Greg Peters revealed the firm's plans to address password-sharing without 'alienating a certain portion of [its] user base.' He stated, 'We continue to monitor it so we're looking at the situation. We'll see those consumer-friendly ways to push on the edges of that.'
Netflix currently offers account-sharing features that allow people in a single household to use one login. However, the streaming service now worries that some users are sharing their logins among different households, with distant friends and even strangers.
While Netflix has not disclosed how it will monitor password sharing, it may look to limit IP addresses, which could become a problem for families who live apart. The firm may also use Synamedia's new AI system designed to crack down on account sharing.
Netflix's crackdown on password sharing is not the first time the streaming service has vowed to take action. In the past, it has blocked users who use VPNs to access programming not available in their own geographical region.
