Netflix is testing in three Latin American countries whether people are willing to pay extra for legal account sharing. A trial in which Netflix has more to lose than to gain.
It’s no secret that Netflix has been trying to stop users from sharing their account with people outside of their households. Now, the North American streaming service is launching a new initiative in Chile, Costa Rica and Peru to find out whether people would be willing to pay for legal account sharing.
Initially, the account sharing feature will cost an additional $2.99 per month, as Netflix says in a blog post. The company also mentions that they’ll collect data in these countries first and then decide whether to roll out the feature globally. The decision will be taken in a few weeks at the earliest.
That’s everything Netflix has revealed so far.
When it comes to account sharing, Netflix has always been strict. Section 4.2 of the Netflix terms of use states that sharing a password outside of your own household is an offence that – according to section 4.6 – may be punished by blocking the account.
Yet, nobody seems to be impressed by this. Surveys by several industry magazines, such as The Manifest, may not be one hundred percent representative, but have all come to the same conclusion: at least half of all Netflix subscribers who took part in the survey reported that they share their Netflix password. Currently, there are over 220 million active Netflix accounts worldwide. Account sharing is potentially costing the streaming service millions of dollars in revenue.
Last year, Netflix tried to make account sharing more difficult by adding authentication. The real problem with account sharing is that it’s difficult to prove and punish. In theory, Netflix could use the IP address to distinguish between devices inside and outside a household. However, the system would then also issue an alert if, for example, you access your Netflix account on the train via a mobile network from an IP address that doesn’t correspond to your home router’s.
The American streaming service doesn’t seem to have found any practical solutions yet. Instead, Netflix keeps launching new «tests». Their primary task is probably to use their media presence to remind people that they're doing something illegal, even if Netflix can’t really do anything about it.
The same goes for the most recent attempt to make account sharing legal in exchange for a small, voluntary fee – which would probably only be paid by those who want to feel less guilty. So nobody, let’s face it. Is there anything to gain for Netflix by launching such an unpopular measure? We’ll see. Keep in mind that the most expensive streaming service in the world increased its price only recently. It might backfire and make switching to a competitor all the more appealing: If five people share an account today until Netflix finds an efficient solution to dissolve the association, this is no guarantee that the four people leaving will create a new separate account. That means fewer views. Fewer series minutes. Less fuzz. Surprising viral hits like «Squid Game» wouldn't be impossible, but less likely. And Netflix needs them to justify its horrendous costs and prices. In the end, Netflix would only lose.
What’s your opinion?
What's your opinion on account sharing?
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I'm an outdoorsy guy and enjoy sports that push me to the limit – now that’s what I call comfort zone! But I'm also about curling up in an armchair with books about ugly intrigue and sinister kingkillers. Being an avid cinema-goer, I’ve been known to rave about film scores for hours on end. I’ve always wanted to say: «I am Groot.»