The streaming giant Netflix has dominated the scene since it launched its online service in 2007 and remains the most-subscribed-to streamer in the world, although it’s being contended by HBO Max, Prime Video, and Disney+. While they gained 7.7 million subscribers in the fourth quarter of 2022, according to Variety, they admit they might initially lose some subscribers in the months ahead.

Last year, Netflix announced they would crack down on password sharing, a tactic in which subscribers give their passwords out to family and friends so that several different people can watch Netflix while only one actually pays the subscription fee. This is technically not allowed per Netflix’s user agreement. However, it’s impossible for the service to actually know who is watching, as a single user can stream movies and shows from several different devices. In a recent announcement, co-CEO Greg Peters expects some users who rely on password sharing to cancel their subscription outright:

MOVIEWEB VIDEO OF THE DAY

This has caused a significant amount of backlash, especially since Netflix previously implied they know of and approve of password sharing via social media:

“This will not be a universally popular move… [There will be] a bit of cancel reaction to that.”

Netflix’s End to Password Sharing Isn’t as Strong as People Might Think

     Netflix

They haven’t announced exactly how they’ll end password sharing, and likely never will since subscribers could use this knowledge to avoid their crackdown measures. Greg Peters describes the initiative as a “gentle nudge” for users who aren’t the paying subscriber to get their own subscriptions. This could simply mean that if you log on to Netflix from a device that wasn’t the original device used to pay for the subscription, you might get a pop-up asking you to buy your own Netflix plan.

Netflix has also garnered criticism over their habit of canceling their original shows, many of which were well-received by audiences. The service is also notable for churning out hundreds of original shows and movies each year, which Ben Affleck has referred to as an “assembly line process” that isn’t the best way of making genuine entertainment.

Despite these criticisms, the other co-CEO, Ted Sarandos, remains optimistic about the future of the company:

Time will tell if Netflix’s new strategy is actually just a “gentle nudge” or a true crackdown. Currently, Netflix offers four plans: three ad-free plans that allow you to watch on one, two, or four screens simultaneously and a cheap, basic plan that includes ads. Some of their most popular series include Stranger Things, Wednesday, and Squid Game.

“We’ve always been focused on the future and where the consumers are going… so it’s an enormous amount of growth ahead, even in markets where we are very well established.”