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Impact of the Netflix Crackdown on Password Sharing

As you, and probably most of your students know, a few months ago, Netflix announced it would crackdown on the common practice of password-sharing. The company had kind of looked the other way on this for years. While many onlookers were concerned about what might happen to the streaming giant’s subscriber numbers, it looks like the strategy might be working. The topic is relevant for our students — many of whom probably share(d) passwords. It could lead to a quick class discussion.

The following class discussion questions which might be done in assigned for discussion board posts, in-class small groups, paired partners, or simply a full class discussion.

  1. Analyze the motivations and potential consequences of Netflix’s password sharing crackdown.

Instruct students to consider factors such as revenue protection, user behavior, and industry-wide implications. Afterward, facilitate a class discussion to share and compare their findings.

Motivations behind Netflix’s password sharing crackdown: Protecting revenue by ensuring that all users pay for their own subscriptions. Maintaining a fair subscription model and preventing unauthorized account access. Encouraging individual subscriptions to increase revenue and accurately measure user engagement.

Potential consequences of the crackdown: Decline in user growth as individuals may be deterred from subscribing individually. Increase in subscription revenue if those who previously shared accounts sign up independently. Potential industry-wide impact as other streaming services may adopt similar measures.

  1. Evaluate the pros and cons of cracking down on password sharing from a streaming service’s perspective.

Encourage students to consider factors such as revenue generation, user experience, and maintaining a fair subscription model. Ask them to provide examples from the article and their own insights.

Pros: Increased revenue from individual subscriptions.Enhanced accuracy in measuring user engagement and content preferences.Improved security and account authentication.

Cons: Potential decline in user growth and subscription rates. Risk of alienating users who value the convenience of password sharing. Need to balance revenue protection with user satisfaction and loyalty.

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