Netflix alerts telecom groups about account sharing crackdown

Netflix has been in talks with UK telecoms groups to move the streaming conglomerate’s service ahead of action on account sharing expected later this month.

The US conglomerate, which has said free use of its platform has impacted its ability to invest in new TV and movies, plans to start alerting customers over account-sharing breaches in the coming weeks, according to people familiar with the situation. planning.

People familiar with the talks said telecoms groups that use Netflix as part of bundled TV content have had meetings over the warnings planned over the past week. Companies such as Sky, BT, Virgin Media and TalkTalk offer Netflix as part of bundled deals on broadband and TV content.

But people close to the talks said there was a risk of complaints from some customers, many of whom have become accustomed to sharing their account details with family and friends, activity the company previously turned a blind eye to. One person described it as a “good partner” for groups that offer the service as part of their membership.

According to a person familiar with the matter, telcos’ call centers are likely to have questions and complaints after the plans are implemented, which means they need to work closely with Netflix.

The company had sought to ensure that its partners were kept informed of its plans as they progressed over the past few months, said a person close to the talks.

Once the account-sharing operation is in place, customers will be encouraged to set a primary location, which would mean whoever lives in their household can access their Netflix account, according to People Is.

If it is discovered that the account is being used outside of that primary location, the account holder will be emailed about additional use, including “interstitials” related to the case inserted at the start of the programming.

The warnings will roll out in most of its major markets, including the US and the UK, to prevent non-subscribers from freely using customers’ passwords and convert them into paying customers instead.

Netflix estimated in April that more than 100 million households worldwide shared accounts with other users.

The company was forced to delay the planned rollout of its crackdown on account sharing from the first to the second quarter of the year.

Following strictures in Canada, New Zealand, Spain and Portugal in the first quarter, Netflix said in a letter to shareholders that its new “paid sharing” service — in which customers share their account with people outside their household for a fee – resulted in a “cancel response” which led to reduced membership growth.

But Netflix said that after an initial drop-off, customers soon began adding “additional member” accounts, boosting revenue and persuading management that it was taking “the right approach.”

The company said that in Canada, the paid subscriber base was now higher than it was before the launch of the paid sharing service.

The streaming service is seeking to improve profitability in the face of increased competition from rivals such as Disney and Apple. Netflix declined to comment.

Additional reporting by Christopher Grimes in Los Angeles