 |
| Netflix to Make Changes for People Who are Sharing the Same Accounts |
A lot of users decided to cancel the service after Netflix no longer allowed account sharing in more than 100 countries.
Every three months, Brandy Andersen loads her clothes, kitchen supplies, fans, and a small TV into her car to travel to a new city. Her job as an emergency nurse makes her travel frequently between New York, Boston and Washington, as well as remote parts of northern California. Meanwhile, her Netflix account is registered at her home address in the state of Georgia, thousands of kilometers away.
Andersen is one of many longtime Netflix customers who are angered by the account sharing block, which began in place in the U.S. last week.
After years of encouraging account sharing with each other, Netflix is asking users to set a location, like a subscriber's home address. When logging into an account at this location, anyone can use the account. If the user enters the account from another location, they will have to sign in first at the main location before moving to other places.
"For members with second homes or those who travel frequently, open the Netflix app on your mobile device when connected to Wi-Fi at your primary location once a month, then be accessible when you arrive at the second location," Netflix's terms state.
It also offers a subscription option for "people who are in the same family but don't live in the same household," but pay an additional fee of $8 per month.
According to TechCrunch, Netflix's policy is annoying to users. Some customers, like Andersen, will find themselves in the dilemma of signing up for a paid plan but often traveling between locations thousands of kilometers apart for work or family reasons. There are also parents who share accounts for their children to attend school remotely, adults who split accounts with elderly parents, or groups of friends who share accounts to save money.
The Washington Post noted on Twitter and Facebook that many people are complaining, even announcing their abandonment of Netflix in favor of more open apps like Disney Plus and Max.
"I'm not going to pay $8 more a month. The cost of course has to add up over time, which is not frustrating. But it's unbelievable when they say I can't watch movies on my own account," Andersen said, considering stopping Netflix's $19.99-per-month pay plan.
Sarah Taylor, who lives in Canada, shares her account with her retired parents. When Netflix asked Taylor to upgrade her account to add more users, she decided to call to cancel the service. A customer service agent said Taylor could share the account if she watched for a few minutes on her phone, then drove 25 minutes to her parents' house, connect to their Wi-Fi and continue watching for a few more minutes on the phone, before logging into the account on the TV at their parents' home. She has to maintain this every 14 days, in addition to paying $9.99 per month for the basic account.
"It's crazy. Many will give up on Netflix. I know a lot of people who have done that," Taylor said.
Meanwhile, Netflix has anticipated the anger of its users. The company tested the policy in several small markets last year. "There is always grievance in every market. Then they release content that engages users and metrics recover after about two months," said Rich Greenfield, media analyst at LightShed Partners. "The best way to attract new subscriptions is to build content that users can't ignore."
Not everyone is upset by Netflix's changes, though. In an April survey, consulting firm Wedbush Securities asked Netflix customers what they would do if the app tightened account sharing. 40% said they wouldn't change their subscription, 30% said they would use a family or group plan, and 15% said they would quit Netflix.
Some are happy that the app blocks "temple watchers," bringing more revenue to their favorite shows and reducing the risk of raising prices each month. Last year, Netflix said more than 100 million people were using borrowed accounts to watch movies on its app.
"This is an important transformation and Netflix is working hard to ensure this process is complete," CEO Gregory Peters said on a conference call earlier this month.
There are some services with similar features to Netflix that still allow users to share accounts, but experts warn they could follow in Netflix's footsteps in the future. "Netflix is pioneering and I think other platforms will do the same," said Alicia Reese, an analyst at Wedbush.
