The media-service providing company Netflix is soon expected to restrict its users from sharing their passwords. Netflix will reportedly crack down on this practice of outsmarting the company in the near future.
The company’s product chief Greg Peters recently announced, “We continue to monitor [password sharing]. We’ll continue to look at the situation and we’ll see those consumer-friendly ways to push on the edge of that, but we’ve got no big plans at this point in time in terms of doing something different there.” Peters, while speaking at a quarterly earnings call, said that the online streaming service has made an addition of close to 6.77 million paid subscribers in the last quarter. The Los Gatos, California-based company has more than 150 million of such paid subscribers.
According to a report by market research company GlobalWebIndex, about two-thirds of all users of the streaming service share their passwords with others. The people that the users usually share their passwords are mostly among friends and family who themselves do not have a current subscription. Netflix’s decision to clamp down on such users will mean that the users have to pay for their own accounts. However, it could also end up in users switching streaming services considering the rising competition in the media-service market.
A similar move was earlier pulled by video-sharing company Synamedia, where the company monitored the password sharing activity among users through a special algorithm. The algorithm worked by tracking the location of users who were found to be using the same account simultaneously from different locations across the country. According to a report by Metro, CPO of Synamedia Jean Marc Racine said, “Casual credentials sharing is becoming too expensive to ignore.” Racine added that “Our new solution gives operators the ability to take action.”
Norman Pearlstine is the Chief Editor of News Raise and focuses on Business news. His responsibility is to oversee the editorial content including business, commodities, personal investments and the stock market.
Be First to Comment