Netflix warns UK service providers on credential sharing clampdown

Netflix has reportedly warned UK telecom and pay TV companies that distribute the streamer to expect criticism from customers as it introduces measures to tackle credential sharing.

Netflix has reportedly warned Sky, Virgin Media, TalkTalk and BT to expect a spate of complaints as the changes come into force in the coming weeks.

Telcos, pay TV and cable companies that super-aggregate Netflix and other streaming services may find that they become the target of customers’ wrath as it introduces its ‘paid sharing model’.

It has been estimated that about a quarter of UK Netflix subscribers engage in password sharing to view the streaming service for free.

Netflix last quarter delayed its crackdown on password sharing, dampening revenue expectations for the second quarter. The streamer’s letter to investores indicuated it was “pleased with the most recent launches of paid sharing” – Netflix’s initiative to convert illicit password sharers to legitimate subscribers – but said that “the latest learnings” from the programme would take time to translate into changes that would “lead to even better results”.

“To implement these changes, we shifted out the timing of the broad launch from late Q1 to Q2. While this means that some of the expected membership growth and revenue benefit will fall in Q3 rather than Q2, we believe this will result in a better outcome for both our members and our business,” Netflix said.

Paid sharing enables users to add extra members to their account or take up a new subscription.