Netflix, the world’s leading streaming service, is set to implement a new policy that will prevent subscribers from sharing their passwords with others. The announcement was made by the company’s new co-chief executives, Ted Sarandos and Greg Peters, who took over the role from Reed Hastings, the company’s co-founder and CEO for more than two decades.
According to Sarandos and Peters, the new policy is aimed at addressing the issue of password sharing, which has been a significant concern for the company. The practice allows one subscriber to share their login credentials with multiple people and has been a significant source of revenue loss for Netflix. The company estimates that password sharing costs billions of dollars in lost revenue annually.
The new policy, which is set to be implemented in many countries, will require Netflix subscribers to use separate accounts for different users. This means that each subscriber will have to create a unique login for every individual who wishes to access their account. The company has not yet announced the exact details of how this policy will be enforced, but it is expected that it will involve the use of sophisticated technology to detect and prevent password sharing.
While the new policy has received criticism from some subscribers, Sarandos and Peters have defended the move, stating that it is necessary to ensure the sustainability of the company. They also noted that the policy will not affect the majority of Netflix users, as most subscribers do not engage in password sharing.
This move is not the first time Netflix has tried to address the issue of password sharing. In 2016, the company introduced a feature that allowed users to create up to five profiles per account. However, this did not prove to be effective in curbing the practice, as many users continued to share their login credentials with others.
The new policy comes as Netflix continues to face fierce competition in the streaming market. With the arrival of new players such as Disney Plus and Apple TV Plus, the company is under pressure to maintain its subscriber base and revenue. The new policy is expected to help Netflix generate additional revenue by reducing the number of users who access the service through shared accounts.
In addition to the new policy on password sharing, Sarandos and Peters also announced several other initiatives to expand the company’s global reach. These include the launch of Netflix in new countries, the creation of more localized content, and the development of new technologies to improve the streaming experience for users.
Overall, the new policy on password sharing is a bold move by Netflix’s new co-chiefs, Sarandos and Peters, aimed at addressing a significant concern for the company. While it may not be popular with some subscribers, it is a necessary step for the company to ensure its long-term sustainability in the highly competitive streaming market.