In recent months, Netflix has been facing a major challenge regarding password sharing among its users. The platform has been looking for ways to reduce this practice, which has been a major obstacle to the company’s profits.
However, after taking a step towards its goal, Netflix has sparked a massive boycott. Recently, the streaming platform streaming suffered a huge loss in Spain, where approximately 1 million users abandoned their subscriptions.
Despite this, Netflix has not given up on its goal of reducing password sharing and is confident that it will be able to recover soon.
Netflix Boycott: The Consequences May Come Later
During 2022, the platform suffered a significant drop in the number of users, which made it aware of the issue of sharing accounts without other users paying for the platform.
Therefore, since the beginning of the year, Netflix has implemented a fee of 9 euros (equivalent to 33 reais) in addition to the monthly amount paid by users who share accounts.
Through technologies such as account activity control and IP tracking, the platform can identify when the same account is accessed from different addresses and carry out the charge.
And, well… remembering is living!
Love is sharing a password.
— Netflix (@netflix) March 10, 2017
“Love is sharing the password.”
Global market experts are not confident
According to Kantar, a company that conducts international market research, two-thirds of the more than 1 million users who boycotted Netflix in Spain made that decision because of the extra fees.
However, the company is not worried about losing users. This is because the vast majority of people who left the platform were using a borrowed account, that is, they were not paying.
However, global market experts at Kantar predict that these attitudes could have a negative impact on Netflix in the future. According to Dominic Sunnebo:
“It is clear that this sharp drop is due to the crackdown on split accounts.”
The fees have already been applied in Canada, Spain, Portugal, New Zealand and some Latin American countries, with Brazil already being placed as one of the next on the list for testing. However, there is still no forecast for when the charges will arrive.
