Much to the chagrin of cinephiles on a budget, Netflix recently made password sharing pretty much impossible. Although users were initially very unhappy, the streaming service has reaped significant rewards. Now, other companies — from similar and dissimilar industries — are looking to do the same. But, can lighting strike the same place twice? 

How Netflix Crackdown on Password Sharing Paid Off

For many years, Netflix had the lion’s share of the streaming market. The entertainment service was at the top of their game and they knew it.

In fact, Netflix was so confident that it encouraged password sharing! 

Nevertheless, the brand was humbled when it experienced its first stock crash in 2022. 

Between that and the new competition in the streaming wars, Netflix made a risky move. Through IP tracking, they forced logins outside the location of their initial use to create their individual accounts. 

The results? 

THE STREAMING SERVICE ADDED 30 MILLION ACCOUNTS SO FAR THIS YEAR. 

Via CNN

So, customers grumbled about it but ended up coughing up the cash. Now, two companies in particular are trying to get the same payout… 

Will Stricter Access Equal Success for Other Brands? 

Namely, Disney+ and Costco are trying to maximize their profits by cracking down on shared credentials. 

AND FOR BOTH COMPANIES, CUTTING OUT PASSWORD SHARING IS TO MAINTAIN THEIR LIFELINES. 

First, Disney has been struggling to maintain their thrall on audiences. Further, the streaming service wasn’t profitable until Q2 of this year. 

The Mouse is trying to maximize the market share it has. 

As for Costco, the majority of its profits come from its memberships. Therefore, ensuring member cards aren’t lent to friends and family does make a difference to its bottom line. 

However, whether it will experience the Netflix password-sharing effect will depend on consumers… 

How much is rewatching, “Frozen,” again, or a Costco hotdog worth? 

Be Great, 

GCTV Staff

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