Netflix password crackdown drops in the US

Netflix expects to lose subscribers next quarter because of the crackdown.

Together with

The Future. Netflix subscribers recently received an email detailing how the company will start to block login attempts from devices outside of the home. The scheme is an attempt to wring close to the actual amount of revenue that should be generated from all the people watching Netflix, even if they haven’t been paying for it. While Netflix may not be able to convert every viewer, signing up people at half price may boost profits just when Wall Street cares about that most.

Netflix is ready to make American freeloaders pay.

  • If the account holder wants to allow a person outside of the home to access the service, they’ll need to add them as an “extra member” for an additional $7.99 per month.
  • Otherwise, they’ll need to transfer that person’s profile into a new paid account.
  • But, Netflix says people will still be able to log into their account at hotels and other rental properties when traveling (good luck to Netflix on figuring that out).

Netflix noted that its password-sharing crackdown — which has now rolled out in most countries — won’t juice up subscriber numbers but instead count as higher revenue per subscriber.

In actuality, Netflix expects to lose subscribers next quarter because of the crackdown, similar to how the platform loses subscribers whenever they raise the monthly price.

David Vendrell

Born and raised a stone’s-throw away from the Everglades, David left the Florida swamp for the California desert. Over-caffeinated, he stares at his computer too long either writing the TFP newsletter or screenplays. He is repped by Anonymous Content.


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