Netflix Inc. is the online streaming service giant. The company is the best out there that provides online video content services. In every country the streaming giant expanded, it overtook all other local and foreign established businesses and made its mark since the first day. The recent expansions include the various regions, such as Australia, New Zealand, and Cuba. Being one of the most demanded Video On Demand (VoD) service provider, it keeps on expanding its reach across the globe. The latest plan is to enter the second largest economy in the world, China.
It is a natural phenomenon that people share content and it is believed that ‘sharing is caring’. Hence, in the information technology world, the same is applicable as well. People, who subscribe for online services, whether online movies, games, videos, music, etc., plan to share to cut down the costs. For that matter, many users of Netflix prefer sharing their login credentials and accounts with friends and family, which does not seem to be a big deal for subscribers; however, it matters a lot to the company.
The online streaming giant is all set to take a major step that would be a proper crackdown on credentials sharing. The company is constantly facing a decline in its user growth and one of the reasons can be the sharing of accounts between friends and family. According to Seeking Alpha, it is believed that this problem can be very serious for the company in the future if it continues. Furthermore, Seeking Alpha also reported that there is a big decline in the US subscriber growth in the past years.
The corporate giant has pushed its growth by introducing new deals that will contribute to the future growth of the user database of the company. According to BGR, “the deal includes bringing preinstalled Netflix apps to pay TV providers’ set-top boxes, but another chart shows a problem that is bigger for Netflix than any of its main competitors”.
Netflix has done a good business in the past few years as well despite of the slowing growth of its user database in United States, as well as international markets, but it seeks to retrieve that through its new plans. It is believed that the company might put restrictions on the number of people that can access or watch and stream videos on Netflix at the same time. This might help in bringing the number down of shared accounts.