Netflix has warned telecom giants Sky, Virgin Media, TalkTalk and BT to be ready for possible criticism from customers as the streaming service knuckles down on password sharing among users. About a quarter of Netflix's 15million subscribers in the UK password share, according to research firm Digital i.
The world's biggest streaming service has already started cracking down on password sharing in the likes of South America, New Zealand, Spain, Portugal and Canada, with British users expected to be targeted any day now. As a result, sharing passwords across households will likely become more complex and involve additional fees, with Netflix able to detect where you are logged in.
At a earnings report meeting back in January, according to The Guardian, the Netflix told shareholders: "While our terms of use limit use of Netflix to a household, we recognise this is a change for members who share their account more broadly.
"As we roll out paid sharing, members in many countries will also have the option to pay extra if they want to share Netflix with people they don't live with. As is the case today, all members will be able to watch while travelling, whether on a TV or mobile device."
The popular streaming platform reportedly hopes that getting tough on the practice will lead to customers paying more for the service. In Spain, where an estimated 39 per cent of subscribers share passwords, there has been a decline in how many people are signed up to Netflix.
Meanwhile, in Canada the subscriber base has increased after a initial dip, as Netflix offers 'extra member' accounts thanks to a 'paid sharing' initiative.
Warning to telecom giants
Netflix has been in contact with Sky, TalkTalk, Virgin Media and BT over the crackdown as all offer the service with TV and broadband packages. Meetings included warnings that the companies could receive an influx of calls, online chat requests and email queries about changes to their packages.
The meetings tell us that Netflix expect the change to have a big impact on accounts and reports suggest the change will happen by June this year.
The first users will know of the crackdown is when Netflix starts asking to decide which location should count as your 'home' address'. It will then start asking for more money to allow others at different locations to use your account.
