The dilemma of sharing passwords for Netflix subscribers has led authorities to question on whether or not to crack down password sharing. This was after a recent poll was able to determine that one-fifth of American young adults use video streaming services with borrowed passwords.
According to Netflix CEO Reed Hastings, the issue of password sharing can be tolerated at some point, since there are so much legitimate sharing of passwords within the family, including the spouse and kids.
Moreover, if Netflix would stop streaming, those who are accustomed to borrowing passwords may not become automatic subscribers. Another executive from Time Warner also reiterated that such concern about password sharing might not be a big number. If the number will increase though, they would have to do something about it. Nevertheless, the numbers are not significant as of the moment. Thus, he said that password sharing can be a good marketing vehicle for the future.
The domestic growth of Netflix has remained a concern based on the 2nd quarter earnings of 2017. Despite the numbers, the streaming service reached 50 million subscribers in the U.S. in the first quarter alone. Thus, it should end to about 60-90 million as forecasted for domestic subscribers in 2 years.
Nevertheless, Netflix has slowed its growth as the domestic market matured. So, Netflix had its lowest domestic growth from the split of its streaming service of the DVD plan in 2016. Apparently, 2017 has been slower on the basis of its current condition.
The plan to convert freeloaders has become stronger, due to its valuation and small profits. Netflix also has a plan of restricting the number of screens for viewing down to 2-4, which depends on the subscription. This should offer protection against the issues of password sharing, which is not entirely ignoring the issue.