A growing number of Netflix (NFLX) users are expressing concern (and confusion) over the streamer’s crackdown on password sharing.
Earlier this month, Netflix revealed the first details of the crackdown, after an update appeared in the company’s help center that appeared to show that the streamer would require users to identify a “primary location” for all accounts that are in the same household life.
Netflix later clarified that the information at the time only applied to the test countries, which included Chile, Costa Rica, and Peru. However, last week the crackdown spread to Canada, New Zealand, Portugal and Spain, prompting a new wave of customer concerns.
Calgary, Alberta. Canada December 9, 2019: A person holds an Apple TV remote using the new Netflix app in one hand. Netflix dominates the Golden Globe nominations. Illustrative
For the past few weeks, Netflix users have been flooding our inboxes with thoughts, concerns, and questions about the process.
Many have threatened termination if additional fees are introduced, with some suggesting the move will likely help boost competitors like Amazon Prime Video (AMZN) and Disney+ (DIS).
Yahoo Finance reached out to Netflix for clarification on the most frequently asked questions and has been directed to the platform’s help pages, which detail the rules for each specific country where the practice has been implemented. (Remember: there hasn’t been a US announcement yet)
According to the Help Center, “a Netflix account is meant to be shared within a household (people living in the same place as the account owner).”
“People not in your household will need to sign up for their own account to watch; or in some countries, you can buy an additional member and add it to your account,” Netflix said.
Business-added account holders can manage and update their primary location from the Netflix app. Users can easily access their accounts even when traveling or on vacation.
Still, some users remain concerned about the changes. Below are our readers’ top thoughts and concerns:
Lisa C
I’m Canadian paying for a premium Netflix account so we can register up to 4 devices at a time. We watch it on our cable box and our two kids watch it on their laptops at university. So now Netflix wants us to pay an additional $7.99 for additional users? My frustration is that they don’t make any money because the cost of their movies and series goes up or costs too much. …then stop spending so much on it? That sounds like a “you” problem, not an “I” problem. I pay enough for tuition, groceries and rent for my kids, now you want me to pay more? Stop being so greedy.
Hunt D
One aspect of this story that I don’t see mentioned in the Canadian media is the influence of snowbirds. Over a million Canadians travel south for most of the winter, and the Netflix changes appear to rob us of the ability to catch Netflix if we’re away from our Canadian homes for more than a month. …We haven’t canceled yet but according to Netflix we will be suspended from our account on the 21st so by that time they may be seeing a wave of cancellations from Canadians who don’t have access to their home wifi at this time of the year .
Jeff K.
I understand Netflix’s desire to stop five friends who don’t live together from sharing an account login, but that’s how they built their business. Families with children outside of college would be considered households for the purposes of the Stats-Can definition because they still have their primary residence with their parents. It’s not a simple problem, but I feel like Netflix has unnecessarily gone too far.
I’ve been a Netflix customer for years and have seen numerous price increases. It started at around $8/month and is now at $23/month. If I have to add another location, I will most likely put Netflix on a rotation schedule throughout the year along with the other streaming services I do this for. Disney+, Paramount+, Apple.
Amanda G
If the policy change meant we had to pay full price for a subscription, we wouldn’t add the service. The reality is that any subscription service offers limited options at this point, and honestly I believe people will return to illegal downloads. Netflix was a tie because it meant we could ditch our overpriced cable service. At this point, the need for multiple streaming services makes it just as expensive as cable.
While I understand these are all companies looking to make a profit, I believe this will end up being a short-sighted approach.
The economy quickly falls into a recession. Streaming services are not required and easily trimmed to save money. Netflix will likely be just the first company to discourage account sharing, but unlike Amazon Prime, which offers an extra service for the cost, or Disney Plus, which has the most popular children’s programming, they have little to go for could make the spectator imperative .
Annette C.
This crackdown on passwords is discriminatory for families whose children live in two households. Life is disruptive and chaotic, as is the case for children living in two households, and their ability to access their own content on streaming platforms in two households helps bring some stability and reliability to their lives.
Eric W
I stay in three other locations besides my home each month.
This Netflix deal is taking away from my livelihood and leaving me in dire straits.
Netflix made new deals with actors and film production companies and piggybacked consumers to pay for their deals through those deals!
peter k
One of our two sons attends local university and lives at home (no Netflix problem there). The other is studying in another province. But while he’s home occasionally, the majority of his Netflix usage is away from home (Netflix will likely force him to create his own account – as if students have more money to spend these days…)
My wife and I are retired and travel extensively. months at a time. But we live on a budget. …We enjoy our Netflix account, but overall the whole family is more of a casual user.
Phil K.
My brother and I share a Netflix account. He lives elsewhere in town.
I am paying for the full HD package. I have decided if they implement this I will cancel. We currently have Prime, Crave & Apple intermittently. So don’t need Netflix. Paying $23.30 a month isn’t worth not being able to share. We both live alone. These are my thoughts.
Donna M
As a snowbird on a steady income, I chose Netflix as my streaming service. The new Netflix changes do not account for individuals/couples who spend part of the year away from their primary residence, and they ask Snowbirds to pay the additional $7.99 monthly usage fee in order to be able to stream Netflix away from their primary residence despite having a primary residence do not use during this time. …I was told by Netflix customer service that I could not share between my two locations unless I had added the second to my plan.
I get them to try and reduce password sharing outside the home, but am really disappointed that they limit usage of the main account holder who travels.
I will be canceling the service and I really hope these changes are disappointing to you.
Julia W
One extremely important aspect of password sharing that I haven’t touched on is those who serve in the military, particularly those who have deployed spouses and have access to Netflix.
patrick c
I feel like my issue with Netflix is a first world issue since we have two households, but I feel there are enough of us that Netflix needs to have a solution. I doubt we would cancel unless they come up with a reasonable solution.
cara l
I wonder if this crackdown includes account access, which is now included with some contract phone providers as Verizon and T-Mobile add Netflix and Paramount+ to their plans. I share a phone plan with my friends and I don’t live in the same household because if so then that’s not fair as it was added to our phone plan when my friend signed us up through T-Mobile
Michael J
While I respect and appreciate where Netflix comes from, I also have a serious question.
My parents and I don’t share an account, they have their own, they pay for it and we pay for ours, but they commute between a northern state and a southern state half the year. They own property in both places, however they use a Netflix account. They don’t bother changing their main address, instead forwarding their mail 6 months a year. Changing their primary residence would be very difficult and would require them to change their credit card information and bank information just so they could link them to something like Netflix and set a different address half the year.
They are really concerned about this change at Netflix. I don’t know how to contact Netflix and let them know my concerns about this, but I liked your article and just wanted to share our story. I’ve been thinking how to help my parents that obviously they won’t be able to go home and use their wifi to get recertified and I’m not going to tell them to change their address change and billing information just to deal with the new rules, so what should they do? They are legitimate paying customers who are migrating and if the migration becomes difficult they will probably just cancel the account and I wouldn’t blame them.
I believe Netflix has every right to restrict its service to prevent some kind of theft of its service. But they have to strike a balance between what’s right for them and what’s fair for their customers. We don’t all live the same life or in the same way. If people pay for the service, they should be able to use it no matter where they are.
Alexandra is a senior entertainment and media reporter at Yahoo Finance. Follow her on Twitter @alliecanal8193 and email her at [email protected]
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