Overview

Netflix pioneered modern streaming but their terms have become increasingly restrictive. With a score of 38/100, they land in Grade D territory, primarily due to their aggressive password-sharing crackdown, frequent price increases with minimal notice, and the fact that content can disappear from your "My List" at any time without compensation.

The company's shift to an ad-supported tier has also introduced new data collection practices, and the terms grant Netflix broad rights to change the service, pricing, and content library at will.

Key Gotchas

  • 🔴 Aggressive Password Sharing Enforcement

    Netflix actively monitors your account for "household" usage. If you share your password with family members who don't live with you, your account can be restricted or you'll be charged an "extra member" fee. They use IP addresses, device IDs, and account activity to detect sharing.

    Section 4.2: Account Access and Security

  • 🔴 Unlimited Price Increase Rights

    Netflix reserves the right to change pricing at any time. You'll get an email notification, but if you don't actively cancel, the new price applies automatically. Netflix has raised prices multiple times in recent years.

    Section 3: Billing and Cancellation

  • ⚠️ Content Rotates Without Notice

    Shows and movies in your "My List" can be removed at any time due to licensing agreements. No notification, no ability to finish watching, no compensation. You're renting access, not buying a library.

    Section 4.6: Netflix Content

  • ⚠️ Download Expiration

    Downloaded content expires and must be renewed online periodically. Downloads also disappear when content leaves the Netflix library, even if you downloaded it before removal.

    Section 4.4: Portable Devices

Positive Aspects

  • ✅ Cancel Anytime

    No contracts or cancellation fees. Can cancel with a few clicks and service continues until end of billing period.

  • ✅ Profile Controls

    Can set up separate profiles with viewing history and PIN-protected profiles for kids.

  • ✅ Clear Interface

    Account settings and billing information are relatively easy to find and understand.

Score Breakdown

Category Scores

Fund & Account Control (25%) 10/25
Dispute Resolution (20%) 6/20
Liability & Indemnification (20%) 8/20
Transparency & Notice (15%) 7/15
Data & Privacy Rights (10%) 4/10
Exit Rights (10%) 3/10
Total Score 38/100

The Bottom Line

Netflix's terms heavily favor the company. The password-sharing crackdown is the most visible issue, but the underlying terms give Netflix broad power to change pricing, remove content, and modify the service with minimal accountability to subscribers.

If you're considering Netflix, be aware that you're paying for access to a constantly changing library with no guarantees about what will be available tomorrow. The service works well when it works, but you have limited recourse when things go wrong.