On February 1st, when the news spread that the global online video service (OTT) Netflix was going to crack down on account sharing in Korea, it was really upsetting.
However, when the SBS coverage team contacted Netflix, the Netflix side explained that this information was incorrect and that it was not true.
why is it important
Netflix counts more than 100 million households worldwide with shared accounts.
In Korea, too many people share and use accounts, right?
Then yesterday (the 1st), news poured in that Netflix had posted a notice that it would start cracking down in Korea as well.
However, when I contacted Netflix, they said that was not true.
Netflix checked the article posted on the customer center and found that it was posted in February of last year, not yesterday.
At the time, Netflix announced that it would start a test to crack down on account sharing in Chile, Costa Rica, and Peru, but it was misunderstood as it spread again.
Then, why did such an article even be made in Korean and published?
In this regard, Netflix is providing services around the world, so when a notice is posted at the headquarters, it is naturally translated into the corresponding language and announced.
This is an explanation of the misunderstanding that arose in the process.
explain a bit more
Netflix is one of the companies that has benefited the most from COVID-19.
In fact, the number of Netflix subscribers, which was around 161 million in the fourth quarter of 2019, exceeded 230 million at the end of last year.
From the point when the Corona 19 vaccine was supplied and the With Corona policy was implemented worldwide, the growth potential has been questioned, but as if ignoring it, the number of subscribers continues to increase, overcoming slight tremors in the middle.
However, the issue on the demand side that now everyone has seen it and no one wants to sign up has been constantly raised.
In addition, the fact that there are many competitors in the market such as Disney Plus, Amazon Prime, and Apple TV Plus, and the supply-side suspicion that so-called 'big hit' content seems to be less and less continued.
In a way, the crackdown on account sharing may have been a scheduled step for Netflix, who experienced a sharp drop in stock price at the moment when growth potential was questioned.
In fact, since last year, Netflix has been implementing an additional charge policy for account sharing in Chile, Costa Rica, and Peru.
Then, in January, Netflix announced in a shareholder letter that it would "extend account sharing fees from the second half of the first quarter of this year."
So even though it was posted before, it was a situation sufficient to cause misunderstanding.
one more step
If this notice was a 'misunderstanding', will there be no account sharing crackdowns in the future?
That's not it.
Obviously, the industry predicts that it will be implemented in the near future.
So what the heck, when are you going to do it?
Netflix declined to comment.
However, an official from Netflix explained that the sharing crackdown will not proceed as if it were a raid, but will be implemented after sufficient advance notice.
In the industry, there is an analysis that it will start in the second quarter at the latest.