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upstart writes:

Netflix's password sharing crackdown hasn't even launched yet in the States, but is already a public relations mess:

The plan is to try to force Netflix customers to pay an extra $2-$3 every month for service for any users using your credentials outside of the home. An accidentally leaked Netflix help guide last week indicated that users who don't log into their Netflix account in a 31 day period would face the new surcharges, something that didn't go over well with either users or celebrities that travel a lot.

The company was then forced to backtrack, stating the guides were posted in error, and intended for customers in countries like Chile and Peru where the crackdown had already launched. Those efforts, as we'd mentioned previously, were also reportedly a confusing mess for subscribers in those countries, who say it was never really clear how the inconsistently-enforced system actually worked.

Netflix is embracing the move because the company's growth has hit a wall internationally, forcing it to begin nickel-and-diming existing subscribers if Wall Street is to get its improved quarterly returns.

[...] The question then is: is that modest bump in revenue worth alienating and annoying your existing customers in a competitive streaming market? We're apparently going to find out.

To be clear, I still think Netflix has value at its current monthly rate, and many people who complain about the new rate hikes are lazy and likely won't cancel. On the flip side, this move remains the latest signal from the company that it's done with being innovative and disruptive and has, as publicly traded companies usually do, shifted toward nickel-and-diming and turf protection as it attempts to fend off competitors.

Previously:
    Netflix Fights Password-Sharing With Test of $3 "Extra Member" Fee
    Netflix to Start Testing Warnings for People Borrowing Login Info

Original Submission