Netflix Lost More Than $1.5B USD Due To Password Sharing

More companies are joining the crackdown on password sharing

Last month, Netflix expressed its concerns over cracking down password sharing. According to a Netflix executive, Greg Peters, the situation was under constant monitoring for a while. Hence, the streaming platform will change its terms of usage very soon.

 

According to a study, Netflix had a loss of more than USD 134 million every month. Annually, this amounted up to approximately $1.62 billion. All of this was due to those who had shared their password with family and friends. In specific, password sharing was at the peak after the release of the latest season of Stranger Things. The study further states that more than 10% of the 13.7 million regular Netflix users share their passwords with other people (one at least).

At the same time, Alliance for Creativity and Entertainment is launching a mega crackdown on those who share passwords to serve the members. These members include Paramount, Netflix, Sony Pictures, Disney, and Warner Bros.

 

This is primarily because Netflix is not the only platform that is currently dealing with losses due to password sharing. Rather, Disney is facing the same issues on the Disney+ platform.

As for the specifics of the process that Netflix may employ, no details have been shared yet. Though, popular opinion says that the streaming giant will look at the IP addresses of the devices that are signed. At the same time, it may also limit the number of devices that can use the account at one particular moment.

 

While Warner Bros may not be directly affected by ‘password sharing’, privacy is a big concern for them too! Nevertheless, users have been questioning whether they can share their passwords with their family members at least. In this regard, Netflix has made it clear that the goal of this crackdown is the limit the users to one particular household.

With that, Netflix is also aiming to implement other strict policies due to which users will not be able to share account passwords with their friends. Though, further specifics of this crackdown have not been made clear yet. All in all, this might be the end of password sharing on this streaming service.