Netflix Updates Password Sharing Crackdown

Netflix is taking its time combating password sharing among users of its app. Despite a grim outlook at the start of the year, including threats of blocking password sharing due to falling subscriber numbers, many of those changes might be delayed even more after forecasts were overestimated.

The streaming platform has had no issue canceling shows that were underperforming or holding ballooning budgets. But with the potential password crackdown, TechRadar indicates Netflix is holding their testing pattern for at least the summer.

According to the outlet, Netflix's tests in Peru, Costa Rica and Chile will continue and the process hasn't moved much further past these regions. "We are working to understand the utility of these two features for members in Chile, Costa Rica, and Peru, before making changes anywhere else in the world. We don't have anything else to share at this time," a spokesperson told TechRadar.

So no news is likely good news, though it doesn't mean the company will not push forward with their password crackdown when they're prepared to do so. TechRadar guesses that there shouldn't be any solid movement before mid-September. There will be a change coming, in any case. The outlet notes that Netflix set a deadline for the end of 2022 to enact their changes, with shareholders finding out that around 100 million households share their Netflix login information.

The method to counter this is a surcharge against offending accounts using another household's login credentials to watch Netflix. The test in Chile, Costa Rica and Peru stood around $2.99 added to accounts sharing or that want to share. While this has been a success, the company is still holding its larger rollout until later in the year, citing the final three months of the year.

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With Stranger Things premiering the first part of season 4, with the second coming in July, the run-up to the fateful moment should allow for some buzz from the streamer. We're sure that any goodwill they can muster before changing the status quo will be welcome. If the customer exodus after every price rise is any indication, some won't stand change as grand as a password surcharge.