Netflix has reportedly been in discussions with UK telecoms groups to prepare for an upcoming crackdown on password-sharing.
The streaming giant plans to issue warnings to customers who violate its account-sharing policy, as the free use of its platform has impacted its ability to invest in new content.
According to Financial Times, telecoms groups, including Sky, BT, Virgin Media, and TalkTalk, which offer Netflix as part of bundled deals, have held meetings to address the planned warnings. However, there is concern that some subscribers, who have become accustomed to sharing account details with family and friends, may complain about the change in policy.
Previously, Netflix had turned a blind eye to this activity, describing itself as a “good partner” to groups that include its service in their subscriptions.
Netflix will begin warning customers about password sharing violations in the coming weeks. The crackdown will encourage users to set a primary location, allowing anyone within their household to use the account. Netflix estimates that over 100 million households worldwide share accounts, leading to the delayed rollout of the crackdown. The warnings will be implemented in major markets, including the US and UK.
Netflix previously tried a “paid sharing” service but faced a cancel reaction initially. However, the addition of “extra member” accounts led to increased revenues. Netflix aims to enhance profitability in the face of rising competition from rivals like Disney+ and Prime Video.
