Netflix’s CEO Reed Hastings is ok with the idea of users sharing their streaming account information. At the last week’s CES, Hastings said the company sees sharing Netflix account information as “a positive thing.”
HBO also cool with account sharing
In the world of online streaming, account sharing is seen as a gray area. People doing so are not sure whether they are breaking the rules or the law by logging in with the account information of some other person. However, streaming services operators do not always consider account sharing as bad.
“We love people sharing Netflix whether they’re two people on a couch or 10 people on a couch. That’s a positive thing, not a negative thing,” Hastings said.
Previously, HBO’s President Richard Plepler made this clear, when he said such activities are a “terrific marketing vehicle” for the next-generation of viewers, adding his network was in the business of “building addicts” by showing the company’s products, brand and shows to more people.
Why Netflix is ok with account sharing?
Hastings said it often happens that people sharing other person’s Netflix account eventually turn into paying subscribers themselves sometime in the future. Giving an example, he said that there are families, where parents share their login with their child, and it is very much likely that on growing up the child too will subscribe Netflix.
Netflix already supports the idea of family accounts, where each individual can have a profile of their own. Considering this, it is interesting to know that Hastings is still cool with account-sharing as an alternative. Speaking to the reporters at the CES, Hastings said that as kids grow they have better control of their lives, and when they start getting income they tend to have separate subscriptions, and therefore, it has not been really a problem.
Hastings did not share his views clearly on what he thinks about sharing of credentials between non-family members that likely happens between friends and roommates. However, it is very much clear that company has much of its focus on getting people addicted to its content hoping they turn into paying customers sometime in the future. And, this is exactly what HBO wants as well.
On Monday, Netflix shares closed up 3.21% at $114.97. Year to date, the stock is up almost 1% while in the last one-month, it is down over 3%.