Netflix Inc. NFLX mistakenly announced a new set of rules for cracking down on password sharing — and the internet was in an uproar. The rules have since been retracted.
What Happened: Netflix has been testing the “paid sharing” feature in three countries — Chile, Costa Rica and Peru. Netflix account holders in these countries are paying additional fees if a person residing outside their home is accessing the OTT platform.
See Also: What Binge-Worthy Shows And Movies Are Coming To Netflix In February?
In January, while announcing its earnings report, Netflix said it plans to enforce new password-sharing rules “more broadly.”
So, obviously, when Netflix accidentally posted the new set of guidelines for paid sharing meant for the aforementioned three countries to global users — including the U.S. — the internet was furious.
People took to Twitter to share their angry tweets and complain that Netflix’s new rules are unfair and impractical.
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However, it was all a case of a mistaken update on the streaming platform’s help center page.
“For a brief time yesterday, a help center article containing information that is only applicable to Chile, Costa Rica, and Peru, went live in other countries,” a Netflix spokesperson told The Streamable. “We have since updated it.”
Why It’s Important: In April 2022, Netflix said that approximately 30 million U.S. and Canadian households share passwords for accessing content on the streaming services’ platform, while the global tally was 100 million.
With the new password-sharing rules, the platform expects some “cancel reaction” but believes that it will improve “overall revenue.”
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