"Netflix Account Sharing Ban: 'Cancellation' Is the Answer, Angry Consumers React"

'Test Prohibiting Multiple Users Sharing Outside Family'
Varied Online Community Reactions to Netflix-Related Foreign Reports on the 11th
"Subscribers Will Drop Significantly" as Cost-Effectiveness Advantage Declines
Some Support the Company's Position

[Asia Economy Reporter Minyoung Cha] "I’ve been using it because of its cost-effectiveness (performance relative to price), but if they block 4-person party accounts in the future, I think I’ll cancel too." Heo Junhyun (pseudonym), in his 30s, who shared one account with three former colleagues, enjoyed movies and American dramas on Netflix every weekend holiday. Even though he used the premium plan costing 14,500 KRW per month, which allows simultaneous viewing on multiple devices, dividing the cost meant paying only about 3,600 KRW per person. However, since he already uses IPTV at home and only uses Netflix on weekends, he felt it was a waste to pay the full subscription fee.

On the 11th (local time), when foreign media reported that Netflix is testing a policy to block account and password sharing among multiple users who are not family members, Korean consumers responded with a mix of anger and curiosity. Previously, The Streamable, MacRumors, CNBC, and others reported that Netflix sent messages to some consumers stating, "If you do not live with the account owner, you need a unique account to watch," and requested them to open new accounts.

Various reactions such as anger and surprise continued on domestic online communities. One user complained, "Usually, I watch thumbnails (preview images) and summaries for 20 minutes and then turn it off, so paying 15,000 KRW for that is ridiculous." Another user said, "There are no latest dramas anyway, so if sharing is banned, I will cancel immediately." On the other hand, some supported the move, saying, "From a company’s perspective, it’s not profitable, and having many fake subscribers only increases costs."

Account sharing is a similar trend not only in Korea but worldwide. According to the global research firm Majid, 33% of Netflix users answered that they share accounts with more than one person. Netflix’s Basic Plan subscription fee is $8.99 per month, and the Standard Plan, which allows simultaneous viewing on multiple devices, costs $13.99. Users share one account among family, friends, and others with the company’s tacit consent. Finding account sharing partners on anonymous online communities has also become common.

A Netflix representative explained, "Netflix conducts hundreds of tests annually with specific consumers," adding, "This attempt will not lead to a broader crackdown on password sharing, and the test is also for account security issues, not just password sharing." They also added, "This test is to guarantee Netflix members’ viewing rights."

Regarding Netflix’s change in stance, foreign media offered various interpretations. CNBC noted, "Netflix has not been heavily involved in password sharing as subscriber growth and stock price increases offset concerns about revenue loss." The Streamable said, "As the related industry enters a mature stage, companies are expected to become more aggressive regarding password sharing policies."

However, skepticism about the effectiveness of password restrictions is more prevalent. The Streamable analyzed, "Besides Netflix, various global streaming services like Disney Plus, Apple TV Plus, and HBO Max are fiercely competing for subscribers, and with 35% of millennials sharing passwords, subscriber growth directly translates into revenue."