(Fox News) The good old days of password sharing on Netflix are coming to an end.
The streaming platform implemented its crackdown on household sharing with an announcement posted on its website.
Following the move by the streaming giant, CoinDesk Chief of Staff of Content Pete Pachal warned on “Mornings with Maria” that other services are “watching very closely to see what happens.”
NETFLIX PASSWORD-SHARING CRACKDOWN DETAILS RELEASED
Netflix made public, effective May 23, 2023, it was sending an email to members who share passwords outside the household clarifying its rules.
“A Netflix account is for use by one household. Everyone living in that household can use Netflix wherever they are — at home, on the go, on holiday — and take advantage of new features like Transfer Profile and Manage Access and Devices,” it stated.
Pachal commented on how Netflix’s move could impact the streaming service industryand its competition.
“The era of subscriber growth is all but over,” he said. “Like that rapid growth, everyone’s number of subscribers is leveling off. Whether you’re Peacock, whether you’re Hulu, whatever you are, you’re not getting the same amount of subscribers, so you’re looking for more revenue from your existing subscribers.”
He added, “it’s funny, the other streaming services have not dug into Netflix too much. Basically, Amazon Prime dug at them a little bit on Twitter, but not many of the others have, I think because they’re watching very closely to see what happens with Netflix, and if this actually works in terms of the growth that they’re expecting after the initial dip.”
The tech analyst warned that if Netflix’s crackdown becomes a success other competitors could implement similar strategies.
“If that happens, I think a lot of the other services will follow suit because why not? If you can get more revenue from your existing subscribers by making this move, you would do it,” he said.
Pachal went on to explain Netflix’s plan for the new household rules.
“If you try to log into your Netflix accounts from somewhere else, from another location, you’re going to get a prompt that is going to ask you, Hey, is this your primary location? This account is meant for people in the same household.”
However, users are able to change their location if they are on vacation or have a summer home.
