Lessons from Netflix’s Password-Sharing Crackdown

Posted on July 26, 2023 by Contributed in Contributed

Netflix is the uncrowned king of content with the largest audience and global reach. It can make and break someone’s career, make someone an overnight sensation and give a newbie their dream career in a matter of just a few hours.

So far, we have all loved Netflix and cherished it.

Even with all the competition in the market and other content streaming sites rolling, Netflix has not lost its charm. Netflix saw record profitability during the pandemic when people were in lockdown. However, as the lockdown was lifted, the content industry took a turn for the worse. As the biggest shareholder, when the customers kept leaving the platform shares of Netflix took a nosedive. To reduce the power gap and avoid financial loss, the company fired a big chunk of its team last year.

However, it seems like the days of leisure “Netflix and chill” have also taken chill out of Netflix. Last year, after suffering heavy losses, Netflix announced rolling out a ban on password sharing. Now, most of us know that even if you do not own a Netflix account or you do not pay for it, you will always have access to Netflix. Polling with friends, being a freeloader, or sneaking passwords online, there are countless ways of accessing Netflix.

However, now that Netflix is willing to ban password sharing, it seems that it might work as a last nail in the coffin of the entertainment and content giant.

After the news broke an online debate about getting back to the cord and abandoning content streaming sites sparked. More people are willing to go back to the old times and classic Cable TV connections.

To attract customers, Cable TV services have also improved their services. Now, with Cable TV you will get free access to built-in content streaming sites, an online content library, and on-demand title streaming features. if you are looking we would recommend installing a good and affordable internet and TV brand like Optimum.

Is Password-Sharing Crackdown the Loss of Netflix?

Most people think that Password-Sharing Crackdown is the loss of customers. The customer will be required to pay more while getting the same content library as before. To some extent, this is true but if you put it on paper, you will realize that these short-term steps create a domino effect that affects the experience of customers as well as impact the brand in the long run. Currently, there are so many different content streaming sites, and slowly these content streaming sites are engulfing a chunk of Netflix as well. A current report claims that Netflix is no longer the biggest content streaming site and Amazon has taken over its crown already. This means that soon other content streaming sites will get to hit the same numbers as Netflix and it will be over the content streaming giant.

Apart from this price comparison also play a very important role. People already know that Netflix is the best and the biggest content streaming site out there but it is expensive when you compare it to other companies.

Apart from this, most of the newly launched online content streaming sites are struggling to make their mark, which is the reason they are willing to go above and beyond with their content. They are bringing new and better content, investing in foreign artists, and opening up to local and international viewers. With this zeal and hunger for success, they are also rolling out price cuts and discounts now and then, which is attracting more customers. If it continues with the same aggressive speed, these new content streaming sites will soon be able to surpass the success of Netflix.

Deploy Customer Centered Policies

Netflix has always been customer-centered but now with the crackdown on password sharing, they are choosing to burden the customers with authentication hoops.

Businesses with such a competitive market need to take things more seriously while focusing on simplifying things for the customers otherwise, legitimate customers might also choose to exit the platform.

Reducing Friction

As a business, Netflix needs to stick to an approach that will incentivize loyal customers rather than banishing fraudulent customers.

With the use of AI, Netflix can get to track the customer persona and block customers based on the information. This will reduce friction, boost the conversation rate, and help in improving customer retention, customer engagement, and customer spending as well.

2-Step Authentication Can Be Identity-Based

Currently, password sharing is monitored by the pin code and internet connection. Apart from this, if there is a suspicion of an unauthentic user, the MFA atomically blocks the user account.

However, it’s time to make things easier and get to the building patterns to read the user persona. This will help in looking at the personality patterns to see the interests of the user.

Businesses can utilize this opportunity to fill up and resolve issues that Netflix failed to address. Rather than sticking to the old 2-way verification, they can shift to using the persona, which will allow them to shift focus from stopping fraudulent customers to helping in retaining good customers.

Bottom Line

The moral of the story is that there is no doubt that issues like that should be addressed but rather than making it inconvenient for everyone, it is better to utilize technology and boost user experience by using automation.

Photo by freestocks on Unsplash