Recently, there have been reports that Netflix is cracking down on users who share accounts. The company is testing a tool to verify that users are part of the same family, offering to send verification codes to confirm that they live with the account owner.
But taking a tougher stance on account sharing will not do Netflix any favors. In fact, it is another decision that will do little more than annoy active subscribers.
Of course, this is also being used as a way to encourage people to start their own Netflix account. The streaming service even offers a free 30-day trial, something Netflix stopped offering in the United States last October.
Account sharing has always been a gray area
Account sharing has long been considered an advantage of streaming. Many services, including Netflix, offer individual user profiles and the ability to do so on multiple devices at the same time. Sharing the cost between friends and family also means that you can share the cost. With Netflix prices rising quite regularly, this can ease the scam of having to pay an extra $ 1- $ 2 every month.
In fact, in 2016, Netflix co-CEO Reed Hastings said that account sharing was “a positive thing”. Although his comments seemed more focused on the fact, account sharing was a great marketing tool. Because he said that being able to use someone else’s account That account would make an individual more likely to subscribe to Netflix on their own. Of course, the company is starting to take more proactive steps to accelerate this process.
Account sharing is technically against Netflix’s terms of use agreement. Section 4.2 states that “The Netflix service and any content viewed through the service are for your personal, non-commercial use only and may not be shared with people outside your home”.
But has anyone really read the terms of use from start to finish? We are all guilty of agreeing to the terms of service without even pretending to read them. Also, who has time to read more than 2,500 words of legal jargon when they just want to sit and watch The Crown?
Netflix often makes decisions like this
It is unclear whether account sharing can lead people to sign up for Netflix for the privilege of using their own account. But actively targeting users who share passwords, especially after tolerating it for nearly a decade, will not do Netflix’s reputation any favors.
We have seen the company make a number of unpopular decisions over the years. This includes cracking down on VPN users, which allow people to watch content from other countries, ruling out the 30-day free trial period, as well as near-constant price increases. Not to mention that Netflix tends to cancel major shows after its second or third season.
There is no scenario where an active stance against account sharing will work well for Netflix. It’s obvious why Netflix makes these decisions, and the word starts with “D” and ends with “ollars”. The programs are canceled because they do not attract subscribers. Prices go up because subscription fees are the only way to make money. VPN use is being cracked down because rights holders don’t like people watching content on Netflix in regions where Netflix doesn’t have the right to show.
It is the same with account sharing. It is against the rules and, obviously, sharing accounts with people outside your home theoretically affects Netflix’s financial results. Assuming that everyone who shares an account would pay for their own subscription. Some yes, others not. It is impossible to say how these situations would happen.
This verification system already has flaws
Netflix says it is just testing this system, which suggests that it is not a permanent feature. Anyway, not yet. Which is good, because we can already see some flaws inherent in the system, even for people who live in the same house.
Because I was the “parent” on a shared Netflix account, I know that each account is tied only to the details of a single person. Let’s say there is a false positive and a teenager needs to prove that he or she is authorized to use that specific Netflix account. The verification code is sent to a parent, who must pass it on to the child.
It’s okay if the parents are within reach and can do that at any time, but what if they aren’t? Suddenly, you have someone being punished for sharing an account, which is completely acceptable under Netflix’s own rules.
Of course, we don’t know how Netflix will try to detect account sharing. We have already speculated that it could be a tool to signal when account users have very different IP addresses, which would make sense. But we’re not sure and we don’t know the criteria by which Netflix can judge users.
Much like Netflix’s viewing metrics, it’s all a bit mysterious and quiet at the moment.
Result
We understand why Netflix is doing this, but that doesn’t mean we have to like it. Especially considering this sudden shift in priorities. We can only assume that Netflix realized how many people are sharing accounts and was scared, or realized that it was now so big that people would end up paying for their own bills when asked.
The prompts could work and that would benefit Netflix. But what is the benefit for Netflix users? Perhaps the next price increase could be postponed for a few months, as long as this new system works correctly. But we are not going to see that happen for now.
For now, cracking down on account sharing is just a surefire way to annoy your customers. And when customers get very angry, they leave the ship. What is the last thing Netflix wants.