Netflix reveals its plan to crack down on users sharing passwords

Online streaming platform Netflix revealed its plan to crack down on users who frequently share their passwords with friends and family. Speaking at Netflix Q3 2019 earnings interview, chief product officer Gregory K Peters said they are looking at the situation and ‘those consumer-friendly ways to push on the edges’. But he also added that they don't have any big plans yet ‘in terms of doing something differently’. 

New AI system developed

The issue of password sharing was highlighted after a tech firm revealed a new system based on Artificial Intelligence (AI) to crack down on account sharing passwords. It can spot accounts who share passwords and force them to upgrade to premium service or shut the account altogether.

Read: Seth Meyers' Netflix Stand-up Special To Debut On Nov 5

Pricing of Netflix

Peters touched upon the pricing issue saying they don’t feel the pricing of the competitors is really a significant factor in determining the charge of the service.

“Again, the services and the content are highly differentiated, so one is not something you're going to choose to do just for us,” said Peters. “But I would say our job -- when we think our pricing for a long-term perspective continues to take the revenue that we have that our subscribers give us every month, judiciously and smartly invest it into our increasing variety and diversity of content, where we really want to be best-in-class across every single genre,” he added.

Read: Free One-year Access To Disney Plus Could Create Trouble For Netflix

Subscriber base in the US and outside

Talking about the quarter in terms of revenue, the chief financial officer (CFO) Spencer Neumann said not only the number of subscribers base outside the US was better than expected but the overall business performance was strong.

“There was record revenues for Q3, record operating profit, and nearly $1 billion of operating profit and record paid net adds for the quarter,” said Neumann. 

The CFO confessed that in the US, they were slightly behind the target in terms of subscribers. “In the US, we were a little bit short. To your question - we're talking very, very small numbers here”. 

Read: Fernando Meirelles' Next To Be A Climate Change Drama For Netflix

Read: Netflix Releases Panama Papers Movie Despite Lawsuit