Netflix has today started informing Australian users that it will finally crack down on password sharing.
“A Netflix account is for use by one household,” the company explained in a blog post announcing the crackdown.
“Everyone living in that household can use Netflix wherever they are – at home, on the go, on holiday – and take advantage of new features like Transfer Profile and Manage Access and Devices.
“We recognise that our members have many entertainment choices. It’s why we continue to invest heavily in a wide variety of new films and TV programmes – so whatever your taste, mood or language and whoever you’re watching with, there’s always something satisfying to watch on Netflix.”
Love is sharing a password.
— Netflix (@netflix) March 10, 2017
Netflix has been forecasting this move for over a year. In February, it started blocking password sharing in various regions, including Canada and New Zealand, following an initial blitz on Latin American markets.
It is estimated that over 100 million people globally are currently stealing Netflix.
A Finder survey of 1,110 respondents revealed 41 per cent of Australians share a password with someone living in another house, the equivalent of over 8 million people who share a password with someone else.
Of those that share a password, 43 per cent said they would drop the streaming service or cancel their subscription if they introduced an extra fee for sharing a password.
Co-CEO Greg Peters warned investors that there will be an initial subscriber drop as the crackdown expands.
“We see an initial cancel reaction, and then we build out of that both in terms of membership and revenue as borrowers sign up for their own Netflix accounts,” he said.
The below email will be sent to Australian Netflix subscribers today.
