This reflects the streaming service’s concerns to grab every opportunity to build a paying audience.
This article discusses Netflix’s stance of not condoning improper password sharing. The author opines that as services reach a saturation point of subscribers, people stop signing up for new streams due to restricted budgets, and hence share their accounts with others.
For established players like Netflix, Hulu and Amazon Prime, a portion of these “freeloaders” are seen as real lost revenue. According to another article cited in this piece, the Alliance for Creativity and Entertainment (of which Netflix is a member) is looking to reduce unauthorised access to content.
Netflix, however, won’t penalise individuals, but could instead work on technological solutions. These may include location and device tracking, but that would raise additional privacy and piracy concerns.
[3 minute read]