42% Anticipate a Decline in Netflix Subscriptions Due To Account-Sharing Policy

Netflix is cracking down on account sharing in the U.K. and the U.S. The streaming company will now charge extra for users who share their passwords with people outside of their households. This is a major change for Netflix, and it could have a big impact on how people use the service.

Netflix has long allowed users to share their passwords with friends and family. This was seen as a way to make the service more affordable and accessible. However, the company is now adapting to evolving circumstances driven by technology, investor pressures, and mounting competition from other streaming platforms like Disney+ and HBO Max.

Netflix’s account-sharing crackdown will now require users to verify their location in order to use the service. This will allow Netflix to identify users who are sharing their passwords with people outside of their households.

Netflix’s account crackdown is likely to be met with resistance from some users. However, the company is hoping that the new policy will help to increase revenue and improve its bottom line.

Highlights:

• A majority (59.66%) of respondents are subscribed to Netflix.
• More than half (54.89%) of Netflix subscribers are very likely to cancel over Netflix’s account-sharing crackdown.
• 41.86% anticipate a decline in subscriptions due to the account-sharing policy.

According to our Real Research survey on Netflix’s account-sharing crackdown, we found that most Netflix users are aware of the new password-sharing policy, with 60% being well aware and 31% being vaguely aware. However, it is important to note that 9% of users were unaware of the policy, which could lead to some users being caught off guard and facing restrictions on their accounts.

When we asked the respondents for their opinion on Netflix’s account-sharing crackdown, 31% of respondents expressed support for Netflix’s account-sharing policy, while 36% opposed it, and 33% remained neutral.

Public Sentiment on the Impact of Netflix’s New Account-Sharing Policy

Figure 1 shows that over 50% of respondents (42%) projected that Netflix’s crackdown on account-sharing would result in a decline in subscriptions, while 29% predicted an increase. Another 29% claimed there would be no effect.

In the survey poll that follows, we asked respondents whether they have a Netflix subscription. More than half (60%) stated yes, compared to 40% who said no.

Similarly, we inquired whether respondents would consider canceling their Netflix subscription if they were charged for password sharing. Survey results revealed that most of the respondents (55%) were very likely to cancel their subscription and 26% were likely.

Read Also: 77.70% Are Sharing Their Netflix Password With Other People

On the other hand, a minority of 2% were unlikely to cancel their subscription and 1% were highly unlikely. Meanwhile, 15% remained uncertain.

Additional Charges for Non-Household Users to Combat Password Sharing

Netflix has announced that it will be charging users an additional $7.99 per month for each additional user who is not located in the same household as the primary account holder. This is part of the company’s efforts to crack down on password sharing, which it estimates is costing it billions of dollars each year.

When the survey asked the respondents how they felt about this, we found that nearly half (44%) opposed it, 24% were supportive, and 33% remained neutral.

Read Also: 65% Will Still Keep Their Subscription After Netflix Ads Launch