EntertainmentStreamingThe Netflix sharing crackdown is closing in this springIf this were a horror movie, this is the bit just before the baddie comes through the door with a chainsawWhen you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
EntertainmentStreamingThe Netflix sharing crackdown is closing in this springIf this were a horror movie, this is the bit just before the baddie comes through the door with a chainsawWhen you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
If this were a horror movie, this is the bit just before the baddie comes through the door with a chainsaw
When you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
(Image credit: Netflix)
(Image credit: Netflix)
Like all the best scary movies,Netflixhas been foreshadowing itsaccount sharing crackdownfor what seems like ages – but thestreaming service’s latest financial report shows that it’s just a matter of time now before the password crackdown starts picking off your favourite characters. The crackdown is coming to the US, and it’s coming very soon.
The announcement didn’t come via a press release or theNetflixblog: it’s inthis PDFfor shareholders. Netflix says that “we’re pleased with the results of our Q1 launches in Canada, New Zealand, Spain and Portugal, strengthening our confidence that we have the right approach.” So the US is next, and it’s going to happen before this summer.
What effect has the Netflix password sharing crackdown had?
According to Netflix, “we see a cancel reaction in each market when we announce the news, which impacts near term member growth. But as borrowers start to activate their own accounts and existing members add ‘extra member’ accounts, we see increased acquisition and revenue.” In Canada, probably the most similar market to the US, “our paid membership base is now larger than prior to the launch of paid sharing”. Not only that but “revenue growth has accelerated and is now growing faster than the US.”
Netflix is clear that it expects a lot of US subscribers to quit, but it sees that as acceptable losses and very much a short-term thing: in the longer term it expects numbers to recover and improve over the pre-crackdown figures.
It’s unclear what the US pricing will be, but in Canada the charge is roughly USD$6 extra per month per person and you can add up to two people to your Standard or Premium plan. Accounts are tied to a single location but there are allowances for travelling and people who live in more than one place.
It looks like the UK has dodged the account sharing bullet for now, but that doesn’t mean it won’t come soon: with account sharing being monetized in Canada, New Zealand, Spain, Portugal and soon the US, it’s not a question of when Netflix will bring the changes to the UK; it’s just a question of when.
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