Why Netflix’s New Policy to Ban Password Sharing is Problematic

Why Netflix’s New Policy to Ban Password Sharing is Problematic

Netflix has recently altered its plan to ban password sharing, following the widespread backlash against its decision. 

Netflix explains that over 100 million households currently share their accounts which adversely affects the platform’s business. This led to the platform coming up with various plans to curb password sharing. However, each policy targeted at banning password sharing has been met with massive criticism.

The latest password sharing policy of Netflix states that users will need a primary home location and they will not be able to access Netflix in other homes using the same account. Following massive backlash, Netflix confirmed that password sharing will be allowed while travelling for short periods of time. 

Why Netflix’s New Policy to Ban Password Sharing is Problematic
Stranger Things: A Netflix Original | Source: IMDb

They also mentioned that users would be able to add an account from a different household by paying $5.95 extra. The update will be implemented in some countries outside the United States before rolling it out to the world. 

Though Netflix has partially stuck to its previous policy, it seems to be trying to make possible amendments to respond to the backlash. However, it fails to address some valid concerns raised by users, such as how students who live away from their families, broken families, divorced families or traveling workers are supposed to adjust to this policy. 

It is highly probable that Netflix’s new policy to curb password sharing will only hamper its business as it will drive away users who cannot afford to pay such a hefty amount for an individual subscription or those who do not live together like a conventional family. 

Banning password sharing for any platform will prove to be impossible for this reason, though no other streaming service except Netflix seems to be making a huge issue out of this. People against this scheme have already begun considering unsubscribing from the platform and moving to other alternatives.

Why Netflix’s New Policy to Ban Password Sharing is Problematic
Wednesday was one of Netflix’s biggest hits | Source: IMDb

Other streaming services have a limited screen-sharing policy, which means one can use only a certain number of screens from one account at a time. This has helped in curbing password sharing to an extent, but no platform has tried to ban it completely. Nevertheless, Netflix remains adamant and continues to push forward its non-inclusive policy despite the threat of losing customers.

The idea behind the policy is to make more money. If people sign up individually for a streaming service, it could make more money. However, it is high time Netflix realizes that this could prove detrimental to its business as now people who were actually paying for an account will unsubscribe.  Other platforms are also coming up with incredible content, if not better, which could really spell trouble for Netflix.