OPINION:
It’s time to check out the streaming competition now that Netflix has cut one of its best features. By Peter Griffin.
Netflix, the country’s most popular video-streaming service, is taking away one of its best features: password sharing.
The mean-spirited move will affect, by Netflix’s own estimate, 100 million people globally who use a login and password from someone who is actually paying the monthly fee to Netflix.
My father, living in a retirement village up the coast from me, will have to buy his own Netflix account to continue his B-movie action/thriller fetish, or I’ll need to pay an additional $7.99 a month to add him as an “extra member sub-account”.
Netflix became a global streaming goliath on the back of its generous password-sharing policy, which became the best marketing tool in its arsenal. It has always limited how many people can stream Netflix at the same time. Currently, a premium account ($24.99) allows you to stream on four devices at once, and the standard account ($18.49) allows two simultaneous streams.
But the streamer now says the policy means it is leaving vast sums of cash on the table, cash it needs to fund the production of TV shows and movies to swell its already vast content library.
What has actually happened is that Netflix last year reported its first-ever decline in subscriber numbers as a host of streaming competitors, Disney+ and Amazon Prime Video included, ate into its market share. Its numbers have since increased again, but additional subscription revenue will help keep its growth-obsessed shareholders happy.
Most of us would probably prefer that Netflix just spent its existing multibillion-dollar production budget on producing a smaller range of high-quality shows and movies (sorry, Dad). Apple TV+ has pursued that strategy and charges a reasonable $12.99 a month.
Killing password sharing will be a red line for many Netflix subscribers. The new policy hinges on you having a “primary location” and the devices that connect to your WiFi network there. Netflix will use your devices’ IP (internet protocol) address to identify your location, which you can also set via the Netflix app or on your TV.
What about watching Netflix while you are travelling? That will still be allowed, but your device will have to check in at your primary location at least once a month or access to Netflix could be denied. You can change your primary location at any time, but then all of your devices will need to check in there regularly to maintain streaming access. How exactly Netflix will enforce all of this isn’t entirely clear yet and geeky types will no doubt discover workarounds.
But for the average Netflix user who just wants convenient access to quality shows, the move marks a fork in the road. Without password sharing, is Netflix still worth the monthly subscription? We’ll know for sure in a year or so. But it is telling that Netflix first rolled out its new password policy in Peru, Chile and Costa Rica, rather than the all-important US market. Reports from those countries, which are more sensitive to price changes, suggest widely varying results. Some users were able to continue using shared passwords while others were repeatedly prompted to pay for a separate account.
Given that the streamer has a commanding presence on our screens, the New Zealand experience will be watched very closely at Netflix HQ.
Other video-streaming platforms are more relaxed about password sharing – even Sky TV.
“Sharing is caring – we get it!” Sky’s Neon service notes. “If you’ve given your login details to family or friends, check that they’re not logged in and using it, as only two screens can be watched at once on a monthly Standard or Annual Plan, and only one screen on a monthly Basic Plan.”
Now is the time to be re-evaluating your streaming options. Remember that these are all pay-as-you-go plans, so you can simply cancel your monthly payment to Netflix while you check out a rival platform or two.
