Variety reports that "Netflix said it will stage a 'broad rollout' of its paid-sharing plan in the second quarter of 2023, including in the U.S., aiming to convert freeloaders borrowing someone else’s password into revenue-generating subscribers … As part of Netflix’s crackdown on customers sharing passwords with people outside their household, the company plans to start blocking devices (after a certain period of time) that attempt to access a Netflix account without properly paying."
Netflix has tested this approach to shared passwords outside the US, and seems confident that it can make the plan work in the US, though it concedes that there is likely to be some blowback from some subscribers.
According to the story, "Netflix estimates that passwords are being shared in violation of its rules with more than 100 million non-paying households worldwide. It first cited that figure a year ago, when the company told investors it was focusing on generating revenue from password-sharing users."
- KC's View:
Sharing passwords used to be part of the Netflix experience. They actually promoted it in ads. So we'll have to see whether this somehow subverts its brand equity and value proposition, or if folks basically understand the rationale behind it.