Recently, there have been reports that Netflix is cracking down on users sharing accounts. The company tests a tool to verify that users are part of the same household and offers to send out 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. If anything, it’s another decision that irritates active subscribers.
Of course, it is also used as a way to encourage people to start their own Netflix account. The streaming service even goes so far as to offer a free 30-day trial, something that Netflix stopped offering in the US last October.
Account sharing has always been a gray area
Account sharing has long been considered a benefit of streaming. Many services, including Netflix, offer individual user profiles and the ability to be on multiple devices simultaneously. Sharing the cost between friends and family also means you can split the cost. As Netflix’s prices rise quite frequently, this may mitigate the chances of having to pay an extra $ 1- $ 2 each month.
Netflix co-CEO Reed Hastings said in 2016 that sharing accounts was a positive thing. an individual more likely to subscribe to Netflix himself. It is clear that the company is starting to take more proactive measures to speed up the process.
Account sharing is technically in violation of the Netflix usage agreement. Section 4.2 states that “The Netflix service and any content viewed by the service is for your personal and non-commercial use only and may not be shared with individuals outside your household”.
But has anyone read the terms of use throughout? We are all guilty of agreeing to terms of service without pretending that we have read them. Plus who has time to read more than 2,500 words of legal language if they just want to sit and watch The Crown?
Netflix regularly makes such decisions
It’s not clear if account sharing can encourage people to sign up for Netflix for the privilege of using their own account. But actively targeting users who share passwords, especially after enduring it for almost a decade, will not do Netflix’s reputation any favors.
We have seen over the years how the company makes a series of unpopular decisions. This includes combating VPN users, allowing people to watch content from other countries, to abolish the 30-day free trial, as well as the price increases that are almost constant. Not to mention, Netflix tends to cancel great shows after their second or third season.
There is no scenario in which an active attitude towards sharing accounts for Netflix works well. It’s clear why Netflix makes these decisions, and the word starts with ‘D’ and ends with ‘ollars’. Programs are canceled because they do not bring in subscribers. Prices are rising because the only way to make money is to subscribe. VPN use is suppressed because rights holders do not like people watching content on Netflix in regions where Netflix has no right to show.
It’s the same with sharing accounts. This is against the rules, and obviously affects the theoretical impact of accounts with people outside your household. The assumption that everyone who shares an account would pay for their own subscription. Some would, others not. It is impossible to say how those situations would play out.
This authentication system already has errors
Netflix says it is only testing this system, indicating that it is not a permanent feature. Not yet anyway. This is good because we can already see some inherent flaws in the system, even for people living in the same household.
After being the ‘primary’ on a shared Netflix account, I know that each account is only linked to a single person’s details. Say that there is a false positive, and a teenager must prove that he is authorized to use that particular Netflix account. The verification code is sent to a parent who has to pass it on to their child.
It’s okay if the parent is within reach within a moment and can do so, but what if that’s not the case? Suddenly, someone is being punished for account sharing that is perfectly acceptable according to Netflix’s own rules.
Of course, we do not know how Netflix will try to track the sharing of accounts. We have already speculated that this could be a tool to mark if account users have too many different IP addresses, which makes sense. But we do not know for sure and we do not know what criteria Netflix users can rate.
Like Netflix’s viewing statistics, at the moment it’s all a bit mysterious and quiet.
Bottom line
We understand why Netflix does this, but that does not mean we should like it. Especially considering this sudden shift in priorities. We can only assume that Netflix realized how many people shared account accounts and got scared, or thought it was so big now that people would only pay their own bill if asked.
The directions may work, and it will benefit Netflix. But what is the benefit to Netflix users? Perhaps the next price increase could be postponed for a few months, provided this new system works properly. But we’re not going to see that happen for a while.
For now, account sharing is a definite way to annoy your customers. And when customers get too irritated, they jump. Which is the last thing Netflix wants.