Netflix has been trying to limit the use of password sharing since 2019 when its researchers informed the higher-ups that this is a major concern for the service’s revenues. However, Netflix’s willingness to stop the problem took a pause when COVID-19 started to spread worldwide.
Now that the pandemic is over and because Netflix’s market share stalled, the streaming service is actively looking for ways to end password sharing without “alienating” its customers. One of the steps toward achieving this has already been made, as Netflix now offers a much cheaper alternative to those who can’t afford to pay for the basic plan.
The new $6.99 ad-supported Netflix plan is a solid alternative for those who are currently getting the service for free thanks to password sharing. In the next couple months, however, things will become even more serious.
According to the report, more than 100 million Netflix viewers currently watch the service via password sharing, which is quite a lot of revenue that the service is not getting. Netflix now revealed plans to end password sharing starting 2023, so those who are now taking advantage of the feature will be asked to pay for the service.
Since Netflix is able to track down viewers who use password sharing, it will start rolling out changes to the service in the US early this year. One thing that Netflix is worried about is that customers will not like the chances, so it’s probably now trying to find ways to make it worth paying for the service.
One possible solution would be to gradually pressure customers into dropping password sharing, which should prevent some backlash. However, that would mean offering them something in return for their willingness to start paying for the service.