Last year, we saw in the news that Netflix was planning to charge money for sharing passwords with others. As part of this initiative, it has already released this update in some regions to test the feature. Now, Netflix plans to expand the Paid Password Sharing to other areas starting this march.
Netflix has already launched this update in Chile, Costa Rica, and Peru. The users were required to verify their login as an add-in update. The feature has received many negative reviews initially, but the company thinks this is the best way to prevent users from sharing passwords. While password sharing is a common practice among Netflix users, it’s essential to keep in mind that it violates the company’s terms of service. This is to prevent password sharing from being too excessive, as it could ultimately lead to revenue loss for the company.
Netflix expects this shift might change the subscription retention and addition rate. According to the report from Netflix, it has reported growth in Q2 of 2022, which is less than the Q4 of 2021. These new features show that Netflix is aware of the password-sharing practice among its users and is trying to find ways to monetize it while still maintaining its revenue by promoting its tools to do so.
It’s also important to note that Netflix has always used sophisticated algorithms to detect and prevent excessive password sharing. The company has been using a system that tracks IP addresses, device types, and other factors to see when multiple people use the same account.
What is your opinion on this feature, and when do you think this will reach India?
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