Netflix is canceling password sharing, and people are unhappy with this decision. It is no secret that Netflix is falling out of favor with many subscribers. They might be the undisputed king of streaming right now, but that title is very quickly starting to change. Whether you like or hate them, their impact on streaming cannot be ignored. They are to movies and series what Apple is to music. Netflix popularized the movie streaming space in a way we have never seen before. Although they did not invent the idea, they were the first to do it.
At least they used to be the biggest streaming platform. Streaming has become the best entertainment medium as we shift from traditional television to the Internet. However, competition is getting more challenging as other companies enter the space. Warner Bros, Paramount, and Disney entered the room in the last five years. All these companies have one clear advantage over Netflix: they have pre-existing libraries of content they own.
For many years, Netflix had to rely on licensing content. Although they now have a decent library of exclusive shows, this wasn’t always the case. Despite all the competition, they are still one of the world’s top players. With a total global subscriber count of 232.5 million, it is easy to understand why they are king. Disney Plus is currently sitting on 157.8 million. However, they have one advantage over Netflix. They have a more significant library of exclusive content. They own Marvel and Lucas Film. Additionally, all their biggest exclusives also get a box office release. This means they are likely far more profitable than Netflix.
The Netflix Password Sharing Debuckle
With Netflix canceling password sharing, many fans threaten to cancel their subscription. The cancellation of this feature has been a long time coming. Honestly, this topic is more complicated than many would expect. Unfortunately for Netflix, most subscribers do not see this as a complex topic. Instead, they see this as nothing more than a greedy company trying to get more money from people. The streaming giant is very clear about its plans moving forward. If the person is not living in your house, you can no longer share an account with them.
Netflix will still allow account sharing but only for one IP address. You can add five devices to your account, but they must all be connected to one IP. If you want to share your password, that option is still there. However, there will be an additional cost. You can share your account with one person, but it will cost you $15.99. Should you want to share your password with two people, it will cost you $19.99. Netflix states that you will still be able to use your Netflix account when you are traveling.
However, your account will only be active for a limited time. You can only view your account from the road if you stay away from your home for a short time. You must request an access code if you are out for an extended period. For Netflix, it is all about adding more paying members to their service. They say this crackdown will help them spread their service further and make it more sustainable. Netflix states that there are currently 100 million households sharing passwords.
We Hate Netflix Now
As expected, the fans are not happy with this change. Some are already calling on subscribers to cancel the service. With the current economic crisis many are experiencing, people cannot afford 20 dollars a month. Most people look at their expenditures every month. If cuts need to happen, subscriptions are the first thing to go. Most people can look past $6 or $9. However, that $20 becomes harder to justify as prices go up. People argue that they are already paying to have Netflix on five devices, and it should not matter where those devices are allocated.
![Netflix Password Sharing](https://i0.wp.com/baitingirrelevance.com/wp-content/uploads/2023/05/43e0db2f-fea0-4308-bfb9-09f2a88f6ee4_what_is_netflix_1_en.png?resize=640%2C360&ssl=1)
People pay for the service to share their accounts with children in college. If you take this feature away from them, some will stop supporting the platform. Right now, there are many options for people to choose from. You no longer have to go with Netflix; people will look at the prices and decide to go elsewhere instead. You will likely keep your current account if you are used to Netflix. However, this decision can have a significant impact on future potential customers.
Many will look at the current pricing structure and join a competitor instead. The long-term impact this will have on Netflix is still being determined. They are already so big they can afford to lose a few people. There will be a portion of subscribers who choose to close their accounts. Alternatively, there will also be a group of people currently sharing a password that will create an account and pay the fee. The question is, which group is more significant? The second group is more important.
The Netflix Problem Is Bigger Than You Think
Netflix does have more significant problems than just canceling password sharing. People have been unhappy with the platform for some time now. For some people, there are only a few shows that they watch on the platform. When they are done watching those programs, many will not go back to the service for months. They only keep their account active because it is more convenient. You can think of your subscription as a gym membership. This is not to say that Netflix does not have its moments, and they certainly have great shows.
![Netflix](https://i0.wp.com/baitingirrelevance.com/wp-content/uploads/2023/05/netflix-octobre-contenus-2022.jpg?resize=640%2C360&ssl=1)
Although they still need to improve in the movie department, their series and documentaries are plentiful. They are also working hard to start creating content across different spaces. They spend millions in markets outside of the US every year, which is an excellent strategy if they want to continue growing. However, the list of watchable content is growing smaller for many people, and people will eventually stop watching if they keep producing hits like Queen Cleopatra. Right now, Netflix is still enjoying a massive amount of success.
To achieve this success, though, they need to spend millions. Currently, Netflix is profitable. They made $4.49 Billion in 2022. this is down 12.2% from 2021, when they made $5.11 Billion. This is an impressive number, but they still need to catch up to their competitors like Paramount and Disney. The reason for this is apparent. As mentioned, they already have exclusive content to fill their streaming space. Netflix only recently started to produce its content. This means they are spending a lot more money right now. They are paying billions to license series and movies. Disney can tap into their studios and add their backlog. The same goes for Warner Bros with HBO.
Conclusion
Unfortunately for Netflix, they do not have any box office numbers to fall back on. Disney can have a movie fail at the box office and then release it on Disney Plus, where they can attract subscribers. Netflix has no box office presence or numbers. If it fails to impress on Netflix, they will take a loss. Despite all of this, their strategy remains profitable. However, I do see a day when Netflix will lose its independence and get sold to an existing giant corporation like Disney or Warner Bros.
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