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Netflix users are furious after the CEO spoke out about why they’ve stopped allowing password sharing.
The streaming site recently cracked down on sharing passwords between households and now the CEO of the company has revealed why.
In May 2023, Netflix released a statement saying: “Starting today, we will be sending this email to members who are sharing Netflix outside their household in the United Kingdom.”
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Attached to the statement was an email template sent to subscribers who were suspected of sharing their account with others.
The email said: “Your Netflix account is for you and the people you live with - your household.”
However, even though these changes meant that you could no longer share your account with different people, Netflix confirmed that this wouldn’t affect traveling and you’d still be able to stream shows ‘on the go’, whether that is on your ‘personal devices or a TV at a hotel or holiday home’.
To conclude, the streaming service emphasized that one account is for one household, but that household can make the most of their account whether they are in the country or not.
Now though, we've heard from the company's co-CEO, Ted Sarandos, who revealed why they've looked to cut down on password sharing.
A clip of the explanation was shared on TikTok, with the big boss citing ‘a couple of problems’ when asked about why they had decided to introduce the new measures.
“One was revenue, but the other part of it was with this personalization,” Sarandos said during an appearance on The David Rubenstein Show: Peer to Peer Conversations.
“Helping you find something to watch works better, if you don't have five or six different people using your account.”
He added: “So for us, it was really a way to really hone in with the personalisation technology, but also a way to kind of test the value proposition.”
Viewers weren't too happy with the clip, with many taking to the comment section to share their reactions.
One user wrote: “Personalization? isn't that what each profile is for?”
And another added: “He acts like you couldn’t make different profiles on the same account.”
Despite the backlash on social media following the decision, the CEO claimed the new measures have proved successful for the streaming platform.
Sarandos continued: “Our average members are watching about two hours of Netflix every day, so basically, when you go back out to people and say, hey, you know that thing that you're using for two hours a day and not paying for?
“We'd like you to get your own account. And what's turned out nicely about that is most people say, ‘Yeah, that's well worth it for me to do that’.”
