Netflix account sharing may come to an end

#1
It is no secret that Netflix subscribers have been sharing accounts on different IP addresses, amongst friends, family and even strangers on the net.

Netflix's (so far) open policy on connecting devices and computers to the same account in the US is convenient for travelers, but no doubt it is also being abused. At $10 per month for an account, is it possible to suggest that Netflix users were to reconsider the value of service if they were unable to share their account?

There are approximately 10 million viewers getting access to Netflix content without paying, according to Bloomberg News reports. Just slightly 3x more than that number are actually paying for the service.

Michael Pachter of Wedbush Securities and Heath Perry of Goldman Sachs are pushing Netflix to implement technology to prevent such sharing. Monitoring service use more closely could potentially hike revenue by 5%, according to Perry.

Currently two videos are allowed to be downloaded at the same time with one account. That could soon be dropped to just one, in an effort to crack "down on piracy."

A decision like this should not be taken lightly. While a projected 5% revenue increase might seem like the plausible outcome, they may see more Netflix accounts being shut off as a result. When Reed Hastings, the CEO of Netflix decided to split the DVD mail-order and streaming TV services back in 2011, which resulted in doubling the fees for those who stayed on for both services, almost 800,000 subscribers stopped their accounts.

Sources for this article include:
philly.com
 

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