Industry News

Why Netflix's password sharing crackdown makes sense in today's streaming world

15 March, 2021

The hearts of millions of TV-watching young adults likely fluttered just a bit this week when they heard Netflix may start cracking down on password sharing between people who don’t live in the same household.

With competition ramping up as Hollywood media companies and tech giants focus more intently on the sector, churn rising, and post-pandemic growth prospects likely to flatten, it’s going to get a little tougher to drive viewership for the world’s biggest streamer, and to keep those viewers around for the long term.

That’s one reason some Wall Street analysts have long called for a crackdown on sharing Netflix passwords, to ensure that people using the service are generally paying for it. Now, it appear that sharing Netflix passwords may be on its way to becoming a future source of Millennial nostalgia.

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