Netflix sign in page displayed on a laptop sscreen and Netflix logo displayed on a phone screen are seen in this illustration photo taken in Krakow, Poland on January 2, 2023.
Jakub Porzycki | Nurphoto | Getty Images
As Netflix inches closer to rolling out password-sharing guidelines in the United States, college students who use accounts connected to family or friends are bracing for changes to their streaming habits.
The company has said to expect new password guidelines in the coming months, although it hasn’t provided specifics about what they would look like. Netflix in February outlined password-sharing protocols for users in Canada, New Zealand, Portugal and Spain that call for users to set a “primary location” for their Netflix accounts — and that add additional monthly fees for out-of-household “sub accounts.”
While Netflix hasn’t said whether the U.S. plan will ultimately resemble these earlier changes, some worry that a crackdown on password sharing could shake up…
2023-03-08 16:16:51
Link from www.cnbc.com
Netflix has recently announced that it will crack down on password sharing among college students, leading to anxiety among the student community. The popular streaming service has become a staple for students looking for entertainment during downtime or study breaks. However, with this new development, students are unsure how to proceed.
Netflix has allowed password sharing for some time now, but the company is now testing a verification system to ensure that only authorized users can access accounts. The system is designed to prevent users from sharing passwords beyond their household or family circle. The verification process requires users to input a code that is sent to the account owner’s registered email or mobile number.
While the verification process may seem like a minor inconvenience, students are concerned about the potential disruption it may cause to their viewing habits. For many students, Netflix is an essential part of their daily routine, providing a much-needed respite from the stresses of academic life. Additionally, some students share accounts with friends and family who do not live in the same household, making verification more challenging.
College students are already facing significant financial burdens, with tuition fees and housing costs weighing heavily. The additional cost of a Netflix subscription may not seem like much, but for many students, it represents an unnecessary expense. Sharing accounts has been an affordable solution for students struggling to make ends meet.
However, from a business perspective, Netflix’s crackdown on password sharing is understandable. Password sharing has always been a violation of Netflix’s terms of service, and the company is losing revenue due to unauthorized usage. According to a survey by the market research firm Magid, 35% of Millenials use shared passwords to access streaming services. This lost revenue could be used to invest in new original content, improving the user experience.
The impact of Netflix’s crackdown on password sharing remains to be seen, but it raises broader concerns about the future of entertainment consumption. Streaming services have transformed the way we watch TV and movies, providing affordable, accessible content. However, the price point of these services may become prohibitive for some, leading to a return to traditional TV and movie consumption methods.
In conclusion, Netflix’s crackdown on password sharing has left college students anxious about the future of their entertainment consumption. While the verification process may seem like a minor inconvenience, it has broader implications for the affordability of streaming services for students. As the entertainment industry continues to evolve, it remains to be seen how consumers will adapt to the changing landscape.