Netflix is already facing stiff competition from Disney Plus and HBO Max and recent findings indicate that the company is losing around $1.6 Billion annually due to password sharing. However the problem affects all the streaming services in the industry.
LOL I just had to admit to a Netflix PR person that I'm a 30-something adult woman who is still on my family's Netflix account.
— Emma Gray (@emmaladyrose) April 16, 2019
Illegitimate password sharing accounts for almost $135 million monthly loss of potential earnings for Netflix. The company is monitoring the issue since early 2016 but hasn’t taken any steps to crack down on password sharing. Netflix decided to keep a friendly stance and not drive the subscribers away, thus being customer friendly.
For long Netflix has not issued an official statement in this regard, however as per Business Insider discussions at ACE indicate that new policies could possibly spring up soon!
For those who are not aware of ACE, it is Alliance for Creativity and Entertainment with Amazon, Netflix, HBO and Disney as members. As the issue impacts all the players in the industry, discussions are being held to sort out the password sharing problem.
Ideas such as finger print recognition, periodic password change, Geo- location verification and sending codes via SMS are being discussed. However, these lock features can’t be implemented on all devices for example Roku.
As the Netflix libraries grow so does the geo-blocking but all can be accessed via VPN. Merely, Introducing finger print recognition could be helpful in decreasing the issue of illegitimate password sharing, but could also drive customers away. Therefore media giants are taking the issue very cautiously to at least retain the subscriber base they already have.
It must be noted that Netflix, HBO and ACE did not respond back to Business Insider when it reached out for details about the issue.