Netflix explains that password protection plans to restrict users who share their accounts outside of their household.
Netflix is exploring non-aggressive ways to limit the number of households sharing accounts.
Reed Hastings, co-CEO and co-founder of Netflix, told investors today that the power giant is exploring ways to limit the number of households that have access to one account. He stressed that any such decision would be handled with caution, and Hasting’s said that any plans to curb the abuse of the company’s terms and services should feel natural to the company as well as the users. “It should feel like it makes sense for consumers to understand,” Hastings said.
While this is in violation of the terms and conditions of the website, it is generally accepted that many people share their Netflix account information. In a recent survey among a thousand adults conducted by Bank of America, 26% of people said they shared their password with another household.
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One method that is currently being tested to limit the number of people who have access to an account is an authentication system where users have to confirm their information by email or sms. This is a small step designed to ensure that people using Netflix accounts are authorized to do so, but it can be bypassed with a simple “Verify later” option.
The decision to further investigate how to limit sub-accounts comes back in the Q1 reports of the streaming giant, which fell short of their projections. Netflix received just under 4 million subscribers around the world, although they were hoping to gain 6 million new users. In the fourth quarter of 2020, Netflix received approximately 8.5 million subscribers, while in the first quarter of 2020, it received nearly 16 million subscribers.
Subscribers are crucial to balancing the books for Netflix. The company plans to spend $ 17 billion on content for the coming year. Netflix will soon have a bunch of big ticket projects, with the adaptation of Mark Millar and Frank Quitely’s Jupiter’s Legacy and Zack Snyder’s Army of the Dead hit the platform in May. In addition, they also have TV series based on Sweet tooth, The Sandman, and the highly anticipated live action Cowboy Bebop Show. Netflix is currently the leading online streaming provider by a large margin, despite the launch of competitors such as Disney +, Peacock and Paramount +. Netflix considers its biggest competitor to be live television, followed by YouTube.
Source: Variety
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