Yahoo Finance Live's Dave Briggs leads the discussion on how Netflix's password crackdown is expected to affect customers' accounts and subscriber sentiment.
DAVE BRIGGS: From the tweet that didn't age well file, here's a beauty-- love is sharing a password. Netflix sent that out nearly six years ago, and now it seems the company has had a change of heart. The question for Netflix now is, do you love the streaming giant enough to pay for your own account? Netflix has begun enforcing its no password sharing policy by officially updating its help center for countries currently in the crackdown zone. That's Chile, Costa Rica, and Peru. But the US may be up next. So pay attention to these changes.
Sharing your Netflix account with someone outside your household will get you on the naughty list. Users will be asked to identify the primary location for the account. And you'll need to sign in to your primary location at least once every 31 days to keep that setting up to date. Now, here's where it gets stickier. If someone logs into your account from a device not affiliated with that primary location, their device may be blocked. If you're traveling and you log on to your Netflix account, you can request a temporary code and watch Netflix for seven consecutive days. If your trip is longer than 31 days, you'll need to update your primary location.
Getting heated yet? I am. Netflix will be using IP addresses, device IDs, and account activity to determine if a device is connected to your primary location. The policy is indeed good news for Netflix and its investors as the company is said to lose around $6 billion a year on customers who share passwords. The added revenue only strengthens its case as the clear streaming leader.
- I think Netflix is the Kleenex of streaming, bottom line, period. Best run, cash flow. Now they're going into advertising. Fantastic. They will be the core.
DAVE BRIGGS: I don't disagree with that. But how this policy is received in the short-term will fall somewhere between Southwest Airlines holiday meltdown and the Taylor Swift Ticketmaster debacle. Yes, the vast majority will shake it off. But brace yourselves for-- pardon the second Swifty reference-- bad blood. Parents with kids in college, pay. Kids at boarding school, pay. Kids studying abroad, pay, pay, pay. Couples who have long distance relationships, you pay one that, at its surface, as simple as a red light, green light game.
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Netflix reveals details on password sharing crackdown (yahoo.com)
DAVE BRIGGS: From the tweet that didn't age well file, here's a beauty-- love is sharing a password. Netflix sent that out nearly six years ago, and now it seems the company has had a change of heart. The question for Netflix now is, do you love the streaming giant enough to pay for your own account? Netflix has begun enforcing its no password sharing policy by officially updating its help center for countries currently in the crackdown zone. That's Chile, Costa Rica, and Peru. But the US may be up next. So pay attention to these changes.
Sharing your Netflix account with someone outside your household will get you on the naughty list. Users will be asked to identify the primary location for the account. And you'll need to sign in to your primary location at least once every 31 days to keep that setting up to date. Now, here's where it gets stickier. If someone logs into your account from a device not affiliated with that primary location, their device may be blocked. If you're traveling and you log on to your Netflix account, you can request a temporary code and watch Netflix for seven consecutive days. If your trip is longer than 31 days, you'll need to update your primary location.
Getting heated yet? I am. Netflix will be using IP addresses, device IDs, and account activity to determine if a device is connected to your primary location. The policy is indeed good news for Netflix and its investors as the company is said to lose around $6 billion a year on customers who share passwords. The added revenue only strengthens its case as the clear streaming leader.
- I think Netflix is the Kleenex of streaming, bottom line, period. Best run, cash flow. Now they're going into advertising. Fantastic. They will be the core.
DAVE BRIGGS: I don't disagree with that. But how this policy is received in the short-term will fall somewhere between Southwest Airlines holiday meltdown and the Taylor Swift Ticketmaster debacle. Yes, the vast majority will shake it off. But brace yourselves for-- pardon the second Swifty reference-- bad blood. Parents with kids in college, pay. Kids at boarding school, pay. Kids studying abroad, pay, pay, pay. Couples who have long distance relationships, you pay one that, at its surface, as simple as a red light, green light game.
CONTINUED:
Netflix reveals details on password sharing crackdown (yahoo.com)