Netflix to begin password sharing crackdown in Canada. What you need to know
Netflix users who have been sharing their passwords with friends and family members who live hundreds – or even thousands – of kilometres away won’t be able to do so for much longer, as the streaming service announced its plans to end password sharing.
“Netflix wants to crack down on password sharing, so they can generate revenue from all these people who have been getting a free ride," technology analyst, Carmi Levy of London, Ont., told CTV News Toronto.
Netflix has 230 million paying subscribers worldwide, but it’s estimated there could be as many as 100 million people watching with shared passwords.
"Later in Q1, we expect to start rolling out paid sharing more broadly. Sharing has not been implemented in Canada at this time," a Netflix spokesperson told CTV News Toronto.
Netflix announced the crackdown last year, after it lost subscribers for the first time in a decade.
“People who do not live in your household will need to use their own account to watch Netflix,” Netflix’s website reads.
Some CTV News Toronto viewers, who shared passwords with family and friends, thought they had already been blocked from the service after recently receiving a notice that said Netflix would no longer be accessible on their TV receiver.
"This has absolutely nothing to do with (password) sharing," Netflix told CTV News Toronto. "From time to time, we end support for the Netflix app on some cable set top boxes in order to offer a consistent, quality experience for our members."
Meanwhile, Levy said the streaming giant has to do something to try and generate revenue due to the rising costs of movies and television productions, as well as competition increasing from other streaming services.
“The company is facing more competition than it has in past years, and they are spending tens of billions of dollars to try and bring new movies and TV shows to Netflix, and the company just can't afford to maintain the status quo," Levy said.
A new survey by Jefferies found 62 per cent of those who share passwords said they will stop using Netflix due to the new policy. Meanwhile, 25 per cent said they cannot afford it, and 35 per cent said they will use another streaming service.
Levy said other streaming services like Amazon, Disney+, Apple TV, and Crave may also have to look at what Netflix is doing when it comes to cracking down on password sharing.
“If you've been sharing, this is the first thing they are going to do to try and break the habit, but there will be more things in the months ahead,” said Levy.
Background
Crave and CTV News are both divisions of Bell Media.
Correction
A previous version of the article said Netflix password sharing has begun in Canada. It has been updated to reflect that password sharing will begin rolling out more broadly in the first quarter of 2023.
CTVNews.ca Top Stories
DEVELOPING Live updates as Stormy Daniels testifies at Trump hush money trial
Adult film star Stormy Daniels will take the stand a second time Thursday as former U.S. president Donald Trump’s hush money case continues in Manhattan. Follow live updates here.
BREAKING Toronto Maple Leafs fire head coach Sheldon Keefe
The Toronto Maple Leafs have fired head coach Sheldon Keefe. The team made the announcement Thursday after the Original Six franchise lost to the Boston Bruins in seven games in the first round of the Stanley Cup playoffs.
Bank of Canada says financial system is stable, but risks remain
The Bank of Canada says the Canadian financial system is stable, but risks remain due to debt servicing costs among households and businesses and stretched valuations of financial assets.
Why these immigrants to Canada say they're thinking about leaving, or have already moved on
For some immigrants, their dreams of permanently settling in Canada have taken an unexpected twist.
Here are the ultraprocessed foods you most need to avoid, according to a 30-year study
Studies have shown that ultraprocessed foods can have a detrimental impact on health. But 30 years of research show they don’t all have the same impact.
Court to hear about search for remains as Winnipeg murder trial enters second day
A courtroom in Winnipeg is expected to hear testimony today about the search for the remains of the four victims of Jeremy Skibicki.
Capital gains tax change 'shortsighted' and 'sows division' business groups tell Freeland
Forging ahead with increasing Canada's capital gains inclusion rate 'sows division,' and is a 'shortsighted' way to improve the deficit, business groups are warning Finance Minister Chrystia Freeland.
Ontario man frustrated after $3,500 paving job leaves driveway in shambles
An Ontario man considering having his driveway paved received a quote from a company for $7,000, but then, another paver in the neighbourhood knocked on his door and offered half that rate.
'We can and we must do better': First ever Air Accessibility Summit hits Ottawa
Federal ministers, airline executives and members of the disability community are gathering in Ottawa today for the first ever Air Accessibility Summit.