The practice of password sharing will soon be prohibited by Netflix, and the company is planning on using a new A.I software to enforce it. This may lead to less password sharing but it may also decrease the number of viewers and popularity of certain movies and shows.
This practice is incredibly anti-consumer in nature and could lead to the streaming platform falling behind in popularity to other services.
Although Netflix remains one of the main video streaming services, the vast majority of viewers are young adults who help the service by promoting their content through their personal social media platforms.
If Netflix succeeds in blocking the use of password sharing it will only force people to find other streaming services that offer the same variety of movies and shows to watch.
These young viewers that Netflix depends on so much for free advertising are some of the biggest users of the password sharing practice.
Young people like to save money where they can, they more than make up for the potential profit loss Netflix may incur with all the free publicity provided on social media that draws viewership in.
Netflix could potentially become one of the least popular streaming services and social media platforms will help other services rise to the top, especially given the fact that other streaming services do not have A.I. blocking their use of password sharing.
This practice will make the service incredibly unpopular among young viewers and lead to Netflix’s share prices plummeting.