THE Netflix offers plans that allow simultaneous streaming on two or four devices, and says in its terms of service that the subscription can only be shared with family members. However, many users share the password with friends and acquaintances; the company plans to do something about it.
Michael Morris, an analyst at Guggenheim Securities, participated in an interview with Greg Peters, Netflix’s product director, during the announcement of financial results for the third quarter. He asked about password sharing, and how it would be possible to address this without alienating some users.
“We continue to monitor this,” said Peters. “We are keeping an eye on this situation and we are going to get consumer friendly ways of approaching this.” The executive warned, however, that “we don’t have any big plans to announce at this point in terms of doing anything different about it.”
“The Netflix service and all content viewed through the Netflix service are intended for personal, non-commercial use only and cannot be shared with people outside your family,” explains the contract.
In the USA, Netflix’s terms say something different: the subscription “cannot be shared with individuals outside your home”. (Here, the company translates the term “household” as “family”.)
Netflix grew below expectations in the US
Password sharing was mentioned after Netflix reported less than expected growth in the U.S.: it expected to add 800,000 new subscribers in the country, but only managed to reach 520,000. The company claims that this was due to the price increase.
As for the launch of Disney +, Netflix recalls that it has been competing with other services for more than a decade, and that no competitor “has the variety, diversity and quality of the new original programming that we are producing worldwide”.
Disney + will launch in the U.S. on November 12 for $ 6.99, with 4 simultaneous streaming and 4K HDR support. For the same price, Netflix has a plan with 2 simultaneous streams and maximum Full-HD resolution.