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
Live updates: What star witness in Trump hush money case has said on the stand so far
The star prosecution witness in Donald Trump's hush money trial took the stand Monday with testimony that could help shape the outcome of the first criminal case against an American president.
Police release 3D images of young child found in an Ontario river two years ago
Police have released a three-dimensional image of a young child whose remains were discovered in the Grand River in Dunnville, Ont. almost two years ago.
Kamala Harris drops F-bomb during White House live-stream
U.S. Vice-President Kamala Harris used a profanity on Monday while offering advice to young Asian Americans, Native Hawaiians and Pacific Islanders about how to break through barriers.
Wildfire smoke drifts across Canada, over parts of U.S., prompting air quality advisories
Air quality advisories are in effect across Western Canada as smoky conditions plague some areas, according to the latest forecasts. Here's where.
When you have a moment's notice to evacuate, what do you take?
Knowing what to have at home, or take with you for an evacuation, can be useful and even life-saving.
'A great victory for the industry': Taxi drivers celebrate ruling that found City of Ottawa negligent in allowing Uber to operate
An Ontario Superior Court judge has ruled that the City of Ottawa was negligent in its enforcement of the city's taxi bylaw when it allowed Uber to begin operating in 2014, harming the city's established taxi industry.
'Judge Judy' Sheindlin sues for defamation over National Enquirer, InTouch Weekly stories
'Judge Judy' Sheindlin sued the parent company of the National Enquirer and InTouch Weekly on Monday for a story that she said falsely claimed that she was trying to help the Menendez brothers get a retrial after they were convicted of murdering their parents.
Steve Buscemi punched in the face while walking in N.Y.C.
Hollywood actor Steve Buscemi has been treated for injuries after being punched in the face while walking in New York City.
Western University researchers unlock potential 'cure' for ALS
New research out of London, Ont.’s Western University is shedding light on a potential cure for ALS, in which the targeting of the interaction between two proteins can halt or fully reverse the disease’s progression.