Netflix warns UK broadband firms of crackdown on password sharing
Netflix has warned telecoms companies including Sky, Virgin Media and BT to brace for a potential backlash from customers who view its films and TV shows through their services, as the streaming service prepares to crack down on the widespread practice of password sharing that allows millions of British homes to watch for free.
Netflix, which is getting tougher with password sharing as one of a number of moves to increase profitability amid slowing rates of new subscriber growth, has estimated that about 100m homes that pay for its service globally share their passwords with friends and family.
The world’s biggest streaming service, which has already begun to crack down on password sharing in regions including Latin America, New Zealand, Spain, Portugal and Canada, is expected to start targeting British subscribers in the coming weeks.
About a quarter of the UK’s 15 million Netflix subscribers, almost 4m homes, allow others to use their service for free, according to the research firm Digital i.
Netflix intends to get paying customers to set a primary location, and when their account is used in other areas the account holder will be warned. They will be encouraged to sign up for a “paid sharing” model, designed to get the free users added for a few extra pounds a month.
The company has held talks with partners that bundle its service with their own TV and broadband packages – such as Sky, TalkTalk, Virgin Media and BT – to warn them of the impending crackdown, in a move first reported by the Financial Times.
Telecoms companies are likely to receive calls, chat and email queries from some customers about the potential curbs to usage that they have become accustomed to sharing for free.
“There may initially be a bit of kneejerk
Read more on theguardian.com
