Netflix has announced a crackdown on password sharing as part of its efforts to combat unauthorized access to its streaming services. The company revealed in its earnings report to shareholders that it will be introducing a paid sharing option for members who want to share their accounts with others outside of their household. This change is aimed at ensuring that only authorized users have access to the platform.
The company has gone ahead to updated its FAQ page in Chile, Costa Rica, and Peru (with other locations to follow), clarifying that accounts will remain shareable, but only within one household. This means that you cannot sign in your Netflix account on another device outside your house. The company plans to use methods like IP addresses, device IDs, and account activity to determine whether a device accessing the account is connected to the primary location.
As part of its new plan, users will be required to sign into the home WiFi of the primary location at least once every 31 days to avoid their device being blocked. This will help Netflix to monitor account activity and identify any unauthorized access. If you insist on sharing passwords however, as an owner of a Standard or Premium plan, you can share Netflix with someone who doesn’t live with you for less than the price of Netflix’s Basic plan by adding an extra member to your account. An extra member will have their own account and password, but their extra member slot will be paid for by the account owner who invited them to join their Netflix.
The company has admitted that it expects to lose customers as a result of this new policy. In its statement, Netflix said, “As we work through this transition – and as some borrowers stop watching either because they don’t convert to extra members or full paying accounts – near term engagement, as measured by third parties, like Nielsen’s The Gauge, could be negatively impacted.”
Definitely not new to customer exodus, Netflix believes that engagement will grow over time as it continues to deliver a great slate of programming and borrowers sign up for their own accounts.
