Reports suggest Netflix is preparing a big crackdown on password sharing in early 2023 as the streaming giant continues to lose subscribers amid stiffer competition and rising inflation The company has already ran a trial in South America, and is expected to expand it next year.
This is a far cry from joking on Twitter that 'Love is sharing a password' as it was quickly expanding in the UK in 2017. In an effort to halt the slide, Netflix also introduced in autumn a new cheaper ad-supported tier costing £4.99 a month to attract customers.
Password sharing has cost the company many subscribers, a source familiar with the issue told the Wall Street Journal (WSJ). According to the source, Co-CEO Reed Hastings told senior executives that password sharing has gone on too long and the pandemic only masked how bad it truly was.
Earlier this month, a government agency said users of online streaming platforms could be breaking the law by sharing their account with other households. The Intellectual Property Office (IPO) said password sharing may amount to “secondary copyright infringement”.
Sharing log-in details for streaming services with family and friends is a widespread practice, despite Netflix’s terms stating that “people who do not live in your household will need to use their own account”.
In guidance published this month, the IPO said: “Pasting internet images into your social media without permission, or accessing films, tv series or live sports events through Kodi boxes, hacked Fire Sticks or apps without paying a subscription is an infringement of copyright and you may be committing a crime.”
The guidance had earlier included a reference to password sharing, but the agency quickly removed it. However, an IPO spokesperson confirmed the law and its guidance remained unchanged.
“There are a range of provisions in criminal and civil law which may be applicable in the case of password sharing where the intent is to allow a user to access copyright-protected works without payment. These provisions may include breach of contractual terms, fraud or secondary copyright infringement depending on the circumstances.”
It is up to the streaming service provider to take action through the courts if required, the IPO said.Disney+ does not allow users to share their password with other households, while Amazon Prime customers can share their account with one other person.
