by Thinus Ferreira
Netflix's password crackdown to try and covert non-paying users by forcing them to become subscribers is having the opposite effect, with millions who have cancelled and who are no longer watching the video streaming service's content.
In an ominous warning of what might happen in South Africa and across the rest of Africa later this year when Netflix's password crackdown process starts in the continent, millions of users in Spain have cancelled and opted out of further watching Netflix, instead of paying.
According to latest market research from the market research firm, Kantar, more than a million Netflix watchers have cancelled and abandoned the streamer just in Spain in the first quarter of this year as part of a huge backlash, after Netflix started to implement its password crackdown that it calls "paid sharing plans".
"The instant effect is that fewer eyes are on the screen for Netflix," Kantar states, noting that there's been an "outright rejection of the password sharing clampdown".
"In a worrying sign for the next quarter, 10% of remaining Netflix subscribers say they plan to cancel their plan in the second quarter of 2023, which is well above the average seen in previous quarters."
here are of course inherent risks with clamping down on password sharing, particularly when back in 2017 Netflix was seen to be actively encouraging it".
"Some users were expected to be lost in the process but losing over 1 million users in a little over a month has major implications for Netflix and whether it decides to continue with its crackdown globally."
Earlier this month Netflix in its latest quarterly report said that it is going to delay and push back its password crackdown rollout in the United States to the second quarter of this year.
Netflix started its password crackdown across South American countries like Chile, Costa Rica and Pery last year, and followed it up in February this year by expanding it to Canada, Portugal, New Zealand and Spain.
Netflix admitted in its quarterly report that it is seeing a "cancel reaction" as subscribers drop the service, and as those who've shared login details don't sign up as paying subscribers themselves.
The Netflix rival MultiChoice embarked on its password crackdown initiative in March 2022 - limiting DStv subscribers to just one online watch stream from an account.
The move which was haphazardly done with technical problems, was met with heavy criticism and backlash by DStv customers with several who said they're cancelling since they can't make proper use of the pay-TV service as a family.
Later in 2022, MultiChoice announced that it was rethinking and retooling its password crackdown and household sharing strategy and would be announcing changes but no changes have been made over the past year.
Netflix says it uses a combination of checking for IP addresses and device ID details to make a determination of whether account logins are coming roughly from the same location, meaning the same household.
If users share their Netflix login details, in some countries they now have to buy "an extra member" subscription and add it to the account. Netflix has not yet announced when its password crackdown policy will be introduced in South Africa or other African countries.
