Netflix Warns UK Broadband Firms

United Kingdom, 18 May 2023: Netflix, the world’s largest streaming service, is taking steps to crack down on the widespread practice of password sharing among its broadband subscribers in the United Kingdom. With an estimated 100 million households globally sharing their Netflix passwords, the company aims to increase profitability by addressing this issue. While Netflix has already implemented similar measures in several other countries, including Spain, Canada, and New Zealand, it is now preparing to target British subscribers in the coming weeks. This move has prompted Netflix to warn telecom companies such as Sky, Virgin Media, and BT of a potential backlash from customers who have grown accustomed to accessing Netflix content through their services.

Research by the firm Digital i reveals that nearly 4 million households in the UK, approximately a quarter of Netflix’s 15 million subscribers, share their accounts with others for free. In an effort to curb password sharing, Netflix plans to prompt paying customers to designate a primary location for their accounts. If their account is accessed from other areas, the account holder will receive warnings. Netflix intends to encourage these customers to switch to a “paid sharing” model, which would involve adding users who currently enjoy free access for an additional monthly fee.

Netflix has engaged in discussions with its telecoms partners, including Sky, TalkTalk, Virgin Media, and BT, to notify them about the impending crackdown. These telecom companies are likely to face inquiries and concerns from customers who have become accustomed to the convenience of sharing Netflix accounts without paying for individual subscriptions. However, Netflix’s move indicates a shift toward increasing profitability and protecting its revenue stream.

Potential Impact and Reactions: The impact of Netflix’s crackdown on password sharing remains uncertain. In Spain, where similar measures have already been implemented, the company has observed a decline in viewing per account. Spanish Netflix users have a much higher rate of password sharing, with 39% of subscribers sharing their login credentials. The Digital i managing director, Matt Ross, predicts a potential initial knee-jerk reaction from subscribers in the UK. The long-term impact on subscriber numbers is yet to be determined, as some users may opt to pay for individual subscriptions, while others may decide to discontinue their Netflix usage altogether.

Netflix’s decision to crack down on password sharing among its UK subscribers is part of its broader strategy to increase profitability. By encouraging paying customers to set a primary location and warning them about account usage from other areas, Netflix aims to prompt users to transition to a “paid sharing” model.

While telecom companies like Sky, Virgin Media, and BT have been informed of this impending crackdown, they can expect inquiries and concerns from customers who have been accustomed to sharing Netflix accounts for free. The impact on subscriber numbers and overall profitability remains uncertain, as some customers may choose to pay for individual subscriptions while others may opt for alternative streaming services. As Netflix implements these measures, the future of password sharing and its impact on the streaming landscape will become clearer.

If broadband and Netflix form a part of your strategy and business in any way, reach out to Happy Telecom to assist you with securing your passwords and ensuring that you remain safe in the online space. We are Happy to help.

By: Jacqueline Freer

Happy Telecom Operates Across The United Kingdom

IT Support: itsupport@happytelecom.co.uk