Netflix’s Password Sharing Crackdown: A Dark Outlook Ahead

The streaming giant Netflix has been threatening for months to crack down hard on people who share passwords. This week, the company started putting some of its changes into effect. As expected, they are so bad that they make you want to throw up. Users, privacy advocates, and even famous musicians hate them. Rightly so, the new rules are an intrusive, unsustainable way to solve a “problem” that other streaming services don’t seem too concerned about.

Netflix’s latest changes, which are being tested in Chile, Costa Rica, and Peru (where it has tried to enforce other annoying password rules), would require you to log into your account at least once every 31 days from your “household,” or the place where you primarily use the service. If you try to sign in from somewhere other than your home, your account could be shut down unless you pay more to add more users.

This week, the company posted these changes on its U.S. help page, which immediately caused a big stir. A Netflix representative later told Streamable that the rules were published by mistake, but it is likely that this change will also affect users in the United States.

Based in the Bay Area, Netflix has been saying for months that it will get tough on people who share passwords. This week, the company started making some changes it had been planning. As expected, they make you want to throw up because they are so bad. Users, people who care about privacy, and even famous musicians don’t like them. Rightly so, the new rules are an invasive and unsustainable way to solve a “problem” that other streaming services don’t seem too worried about.

Today’s users also know that their hard-earned money is better spent on other streaming services that don’t regularly put out mediocre content. The existence of shows like “Hype House” or the upcoming “Avengers”-style mashup of characters from the service’s various romance reality shows should be the basis for a formal investigation into what’s going on inside Netflix. Frankly, the company overestimates how much content it has to offer, and the fact that it went from being a service that encouraged people to share their passwords to one that is cracking down on the practice smells like a shameless attempt to make money at the expense of its loyal users.

It also makes me worry about my privacy. Netflix says it will use information “like IP addresses” to enforce the new rules. The company already prevents users from using virtual private networks to access content unavailable in their area. Together, these two things suggest that Netflix may start keeping close track of when and where users access the streaming service. This very Orwellian idea will make some TV watchers think twice.

Simply put, the new rules don’t seem like they can work, especially considering what a “household” is. People who have to travel to work watch Netflix from their hotels, while others watch on their way to and from work. Children leave home or go to college. People log into Netflix while sleeping at a friend’s or partner’s house. The company’s idea of a household seems to be based on the old-fashioned “nuclear family” model, which shows how out of touch they are.

Other streaming services, like HBO Max and Hulu, also have rules about sharing passwords, but they are only sometimes followed. Anyone who knows a user’s login information can access their account from anywhere and, in some cases, use it simultaneously as another logged-in user. Even though this isn’t the most profitable way to run a business, it has made users feel good about Netflix, which is now doing the opposite to protect its bottom line. That sound will pay off more than Netflix might have thought. When the Netflix news came out, Hulu was trending on Twitter.

After getting much negative feedback about the rule change quickly, Netflix has taken a step back. However, the fact that the new rules are now in place in other countries is a bad sign. If these rules ever go into effect for millions of U.S. users, it will almost certainly ruin a company that almost accidentally changed how we consume media.