Once upon a time you could easily share a Netflix account with your best friend — either split the cost or borrow their password because you really wanted to watch a certain show. Then came the moment of reckoning: Netflix announced that it was cracking down on account sharing and would make sure that everyone enjoying their shows paid their share for that privilege. But just when you thought the party was over, a wrench was thrown in Netflix’s plans and it turns out the new password-sharing test ended up royally confusing early test subjects in Peru. So, what’s the latest on this development and what does that mean for you as a Netflix subscriber? Is Netflix changing its password sharing policy? Here’s what the company is now saying.
Not So Fast
It seemed like a decent money-making idea for Netflix: charge subscribers for password-sharing and earn more in profits. Considering how competitive the streaming market has become, you can’t fault them for trying. But early test subjects in Peru reported massive confusion after they were asked to pay extra when sharing their passwords outside of their own homes. According to these subscribers, Netflix’s messaging wasn’t as clear as it could be. For some, the price increase caused them to cancel their subscriptions. Other users called Netflix to argue that their passwords weren’t being used outside of the house – and they were allowed to continue without paying extra. In short, it sounds like the roll-out was a bit messier than expected.
But Netflix does not plan on suspending their new policy. The key instead, according to Netflix co-founder Marc Randolph, will be to take things slowly.
Randolph told Yahoo Finance, “I don’t think anybody wants to make it difficult for people who have legitimate uses to share their password, share their password or use their password in multiple locations. At the same time, though, [Netflix] would like to control egregious use, which is people distributing their password to dozens or scores of other people.”
With regard to the confusion in Peru, Netflix released a statement to Yahoo Finance that said, “"The millions of members who are actively sharing an account in these countries have been notified by email but given the importance of this change, we are ramping up in-product notifications more slowly. We're pleased with the response to date." The company also stressed that more rollouts will take place in other countries toward the end of the year. Though it may take time, Netflix still plans to crack down on password-sharing — it’s only a question of when.
