It appears that Netflix (NASDAQ: NFLX) has angered the mob.
A petition has been created on Change.org in protest of recent policy changes being implemented at Netflix. It seems that consumers, particularly in Canada, are not too fond of the recent change to limit password sharing.
The controversial decision by Netflix has seen over 36,000 Canadians sign the petition in protest of the changes. The petition, created by Owen Kobe on February 8, has the implied goal of showing the company that “consumers are against this change, and would like the guidelines surrounding password sharing to be reverted.”
While it was created over a week ago, the petition itself has seemingly gained steam recently. As of 8 hours ago the petition had obtained 24,000 signatures – a figure that has climbed more than 50% just today.
Netflix changes policy
While it has been speculated for months that Netflix would be changing its password sharing policy, those speculations came to the forefront earlier this month following changes to the firms support page – however those changes were reverted just a day later. The changes being implemented require that users log into their account at their “primary location” every 31 days, or lose access to the service.
“To ensure uninterrupted access to Netflix, connect to the Wi-Fi at your primary location, open the Netflix app or website, and watch something at least once every 31 days. This creates a trusted device so you can watch Netflix, even when you’re away from your primary location,” stated the policy change.
This key change has been criticized heavily by its customers – such a change limits access for those traveling or attending school, those that travel for long periods for work, and for those that serve overseas, among other situations. Temporary codes are said to be available to extend access by up to seven days for those that surpass the 31 day limit.
The policy is a sharp change from its prior stance on the topic of password sharing.
The changes in password sharing currently impact consumers in Canada, Portugal, New Zealand, and Spain, with the changes expected to roll out to additional markets later in the year.
Netflix has already lost its dominance
The change in policy however might be too little too late. While the streaming service may temporary benefit from a few increased subscriptions due to consumers wanting to maintain access, the unfortunate news for the service is that it has lost its dominance in the streaming industry. YouTube has officially overtaken Netflix in terms of streaming providers, with the video platform holding the title of the most watched streaming service since September, as per a Nielsen report.
Despite this, given the nature of YouTube and its content, Netflix still has the majority of the top streaming programs on its platform, followed by Disney+.
That same report identified that streaming has overtaken other modes of content consumption – streaming currently dominates 38.1% of the content consumption market, versus cable at 30.9% and broadcast television at 24.7%.
Information for this story was found via Change.org, Nielsen, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.