Netflix stock has tanked, subscriptions and revenue are down, and the decision-makers have decided to take drastic action. By cracking down on password sharing. The glory days of being able to Bogart your brother’s Netflix account or tap into your ex-boyfriend’s favorite streaming app are over. Kind of.
It’s not happening in the United States yet, but they are rolling out the new rule in Costa Rica, Chile, and Peru first, with a message to customers warning that anyone who is not part of what Netflix considers a “household” will have to belly up to the bar and sign up for their own account. Owners of the accounts others have tapped into can include them as an “extra member” if they choose. That will cost less than the amount of a basic plan.
“When someone signs into your account from a device that is not part of your primary location, or if your account is accessed persistently from another location, that device may be blocked from watching Netflix.”
The problem is real for Netflix. They told their shareholders a couple of weeks ago that over 100 million households engaged in account sharing. The ramifications were real, with the company saying that account sharing “undermines our long-term ability to invest in and improve Netflix, as well as build our business.”
The Covid lockdowns were very, very good for Netflix . in 2020 and 2021, Netflix seemed like it could do no wrong, but the fade started last year, and the new reality for subscribers is higher rates and no more mooching off someone else’s account.
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